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Does Carl Data Solutions Inc.’s (FRA:7C5) CEO Pay Reflect Performance?

In 2015 Greg Johnston was appointed CEO of Carl Data Solutions Inc. (FRA:7C5). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Carl Data Solutions

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 €3.8m, and is paying total annual CEO compensation of CA$134k. (This number is for the twelve months until 2018). That’s a fairly small increase of 3.2% on year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$134k. We examined a group of similar sized companies, with market capitalizations of below CA$268m. The median CEO compensation in that group is CA$392k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Carl Data Solutions has changed from year to year.

DB:7C5 CEO Compensation December 18th 18

Is Carl Data Solutions Inc. Growing?

Earnings per share at Carl Data Solutions Inc. are much the same as they were three years ago, albeit slightly higher. It achieved revenue growth of 7.6% over the last year.

I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.

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 Carl Data Solutions Inc. Been A Good Investment?

Since shareholders would have lost about 78% over three years, some Carl Data Solutions Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

It appears that Carl Data Solutions Inc. remunerates its CEO below most similar sized companies.

Greg Johnston receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, and returns over three years are not good. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. So you may want to check if insiders are buying Carl Data Solutions shares with their own money (free access).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.