Rob MacLean became the CEO of Points International Ltd. (TSE:PTS) in 2000. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rob MacLean's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Points International Ltd. has a market cap of CA$253m, and reported total annual CEO compensation of US$2.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$425k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$672k.
Thus we can conclude that Rob MacLean receives more in total compensation than the median of a group of companies in the same market, and of similar size to Points International Ltd.. However, this doesn't necessarily mean the pay is too high. 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 Points International, below.
Is Points International Ltd. Growing?
Points International Ltd. has increased its earnings per share (EPS) by an average of 85% a year, over the last three years (using a line of best fit). Its revenue is up 5.3% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Points International Ltd. Been A Good Investment?
I think that the total shareholder return of 68%, over three years, would leave most Points International Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at Points International Ltd. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Points International shares (free trial).
Important note: Points International 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.