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Does FLYHT Aerospace Solutions Ltd.'s (CVE:FLY) CEO Pay Compare Well With Peers?

Simply Wall St

Tom Schmutz became the CEO of FLYHT Aerospace Solutions Ltd. (CVE:FLY) in 2015. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for FLYHT Aerospace Solutions

How Does Tom Schmutz's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that FLYHT Aerospace Solutions Ltd. has a market cap of CA$38m, and reported total annual CEO compensation of CA$438k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$300k. We took a group of companies with market capitalizations below CA$261m, and calculated the median CEO total compensation to be CA$216k.

As you can see, Tom Schmutz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean FLYHT Aerospace Solutions Ltd. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at FLYHT Aerospace Solutions has changed over time.

TSXV:FLY CEO Compensation, January 15th 2020

Is FLYHT Aerospace Solutions Ltd. Growing?

Over the last three years FLYHT Aerospace Solutions Ltd. has shrunk its earnings per share by an average of 43% per year (measured with a line of best fit). It achieved revenue growth of 61% over the last year.

The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 FLYHT Aerospace Solutions Ltd. Been A Good Investment?

Since shareholders would have lost about 46% over three years, some FLYHT Aerospace Solutions Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by FLYHT Aerospace Solutions Ltd., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Shareholders may want to check for free if FLYHT Aerospace Solutions insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.