Does Intouch Insight Ltd.'s (CVE:INX) CEO Salary Compare Well With Others?
Cameron Watt became the CEO of Intouch Insight Ltd. (CVE:INX) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Intouch Insight
How Does Cameron Watt's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Intouch Insight Ltd. has a market cap of CA$8.3m, and is paying total annual CEO compensation of CA$264k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$215k. We examined a group of similar sized companies, with market capitalizations of below CA$264m. The median CEO total compensation in that group is CA$129k.
As you can see, Cameron Watt is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Intouch Insight Ltd. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Intouch Insight, below.
Is Intouch Insight Ltd. Growing?
Intouch Insight Ltd. has reduced its earnings per share by an average of 110% a year, over the last three years (measured with a line of best fit). Its revenue is up 12% over last year.
Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Intouch Insight Ltd. Been A Good Investment?
With a total shareholder return of 8.8% over three years, Intouch Insight Ltd. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared the total CEO remuneration paid by Intouch Insight Ltd., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
And while shareholder returns have been respectable, they have hardly been superb. So we doubt many shareholders would consider the CEO pay to be particularly modest! So you may want to check if insiders are buying Intouch Insight shares with their own money (free access).
If you want to buy a stock that is better than Intouch Insight, this free list of high return, low debt companies is a great place to look.
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 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. Thank you for reading.
