In 2015 Greg Johnston was appointed CEO of Carl Data Solutions Inc. (FRA:7C5). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Greg Johnston's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Carl Data Solutions Inc. has a market cap of €4.9m, and is paying total annual CEO compensation of CA$134k. (This is based on the year to June 2018). Notably, the salary of CA$134k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO total compensation was CA$325k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Carl Data Solutions, below.
Is Carl Data Solutions Inc. Growing?
Over the last three years Carl Data Solutions Inc. has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). It achieved revenue growth of 27% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Carl Data Solutions Inc. Been A Good Investment?
Given the total loss of 80% over three years, many shareholders in Carl Data Solutions Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that Carl Data Solutions Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we would not say that Greg Johnston is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Carl Data Solutions (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.