Does Intrinsyc Technologies Corporation's (TSE:ITC) CEO Salary Compare Well With Others?
Tracy Rees became the CEO of Intrinsyc Technologies Corporation (TSE:ITC) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Intrinsyc Technologies
How Does Tracy Rees's Compensation Compare With Similar Sized Companies?
Our data indicates that Intrinsyc Technologies Corporation is worth CA$25m, and total annual CEO compensation was reported as US$435k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$258k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$121k.
As you can see, Tracy Rees is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Intrinsyc Technologies Corporation is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Intrinsyc Technologies, below.
Is Intrinsyc Technologies Corporation Growing?
Intrinsyc Technologies Corporation has reduced its earnings per share by an average of 82% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 2.9% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Intrinsyc Technologies Corporation Been A Good Investment?
Since shareholders would have lost about 25% over three years, some Intrinsyc Technologies Corporation 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 Intrinsyc Technologies Corporation, 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.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Intrinsyc Technologies.
Important note: Intrinsyc Technologies may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
