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Trent Northcutt has been the CEO of Aurora Spine Corporation (CVE:ASG) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Trent Northcutt's Compensation Compare With Similar Sized Companies?
Our data indicates that Aurora Spine Corporation is worth CA$18m, and total annual CEO compensation is US$137k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$125k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$108k.
That means Trent Northcutt receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Aurora Spine has changed over time.
Is Aurora Spine Corporation Growing?
Over the last three years Aurora Spine Corporation has grown its earnings per share (EPS) by an average of 41% per year (using a line of best fit). Its revenue is up 45% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Aurora Spine Corporation Been A Good Investment?
I think that the total shareholder return of 77%, over three years, would leave most Aurora Spine Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Trent Northcutt is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aurora Spine.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.