Tom Beckerman became the CEO of Prodigy Ventures Inc. (CVE:PGV) 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.
How Does Tom Beckerman's Compensation Compare With Similar Sized Companies?
According to our data, Prodigy Ventures Inc. has a market capitalization of CA$30m, and pays its CEO total annual compensation worth CA$1.9m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$320k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$126k.
It would therefore appear that Prodigy Ventures Inc. pays Tom Beckerman more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Prodigy Ventures has changed from year to year.
Is Prodigy Ventures Inc. Growing?
Over the last three years Prodigy Ventures Inc. has shrunk its earnings per share by an average of 61% per year (measured with a line of best fit). Its revenue is up 44% over last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Prodigy Ventures Inc. Been A Good Investment?
Since shareholders would have lost about 51% over three years, some Prodigy Ventures Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Prodigy Ventures Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Shareholders may want to check for free if Prodigy Ventures insiders are buying or selling shares.
Important note: Prodigy Ventures 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.
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