Marcel Kessler has been the CEO of Pason Systems Inc. (TSE:PSI) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
How Does Marcel Kessler's Compensation Compare With Similar Sized Companies?
According to our data, Pason Systems Inc. has a market capitalization of CA$1.1b, and paid its CEO total annual compensation worth CA$2.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$540k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CA$522m to CA$2.1b, we found the median CEO total compensation was CA$2.2m.
That means Marcel Kessler receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Pason Systems, below.
Is Pason Systems Inc. Growing?
Pason Systems Inc. has increased its earnings per share (EPS) by an average of 101% a year, over the last three years (using a line of best fit). It achieved revenue growth of 6.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Pason Systems Inc. Been A Good Investment?
Given the total loss of 25% over three years, many shareholders in Pason Systems Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Marcel Kessler is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Pason Systems shares (free trial).
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.
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