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Is FLYHT Aerospace Solutions Ltd.'s (CVE:FLY) CEO Paid Enough Relative To Peers?

Simply Wall St

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Tom Schmutz became the CEO of FLYHT Aerospace Solutions Ltd. (CVE:FLY) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for FLYHT Aerospace Solutions

How Does Tom Schmutz's Compensation Compare With Similar Sized Companies?

Our data indicates that FLYHT Aerospace Solutions Ltd. is worth CA$37m, and total annual CEO compensation is CA$438k. (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$300k. We examined a group of similar sized companies, with market capitalizations of below CA$262m. The median CEO total compensation in that group is CA$120k.

It would therefore appear that FLYHT Aerospace Solutions Ltd. pays Tom Schmutz 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.

You can see a visual representation of the CEO compensation at FLYHT Aerospace Solutions, below.

TSXV:FLY CEO Compensation, July 11th 2019

Is FLYHT Aerospace Solutions Ltd. Growing?

Over the last three years FLYHT Aerospace Solutions Ltd. has shrunk its earnings per share by an average of 15% per year (measured with a line of best fit). In the last year, its revenue is up 18%.

Sadly for shareholders, earnings per share are actually down, over 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has FLYHT Aerospace Solutions Ltd. Been A Good Investment?

FLYHT Aerospace Solutions Ltd. has generated a total shareholder return of 5.3% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared total CEO remuneration at FLYHT Aerospace Solutions 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.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

While shareholder returns are acceptable, they don't delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! Whatever your view on compensation, you might want to check if insiders are buying or selling FLYHT Aerospace Solutions shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.