Does Ackroo Inc.'s (CVE:AKR) CEO Pay Reflect Performance?
In 2014 Steve Levely was appointed CEO of Ackroo Inc. (CVE:AKR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Ackroo
How Does Steve Levely's Compensation Compare With Similar Sized Companies?
Our data indicates that Ackroo Inc. is worth CA$7.7m, and total annual CEO compensation was reported as CA$253k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$160k. We examined a group of similar sized companies, with market capitalizations of below CA$281m. The median CEO total compensation in that group is CA$222k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 76% of total compensation out of all the companies we analysed, while other remuneration made up 24% of the pie. Our data reveals that Ackroo allocates salary in line with the wider market.
So Steve Levely is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Ackroo has changed over time.
Is Ackroo Inc. Growing?
Ackroo Inc. has seen earnings per share (EPS) move positively by an average of 71% a year, over the last three years (using a line of best fit). Its revenue is up 18% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Ackroo Inc. Been A Good Investment?
With a three year total loss of 43%, Ackroo Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Steve Levely is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is an important area to keep your eyes on, but we've also identified 6 warning signs for Ackroo (2 are significant!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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. Thank you for reading.
