Kevin Callahan became the CEO of Pioneering Technology Corp. (CVE:PTE) in 2002. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Kevin Callahan's Compensation Compare With Similar Sized Companies?
According to our data, Pioneering Technology Corp. has a market capitalization of CA$5.3m, and paid its CEO total annual compensation worth CA$225k over the year to September 2019. Notably, the salary of CA$225k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CA$281m, and calculated the median CEO total compensation to be CA$218k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Pioneering Technology. Speaking on an industry level, we can see that nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. On a company level, Pioneering Technology prefers to reward its CEO through a salary, opting not to pay Kevin Callahan through non-salary benefits.
So Kevin Callahan receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Pioneering Technology has changed over time.
Is Pioneering Technology Corp. Growing?
Over the last three years Pioneering Technology Corp. has shrunk its earnings per share by an average of 88% per year (measured with a line of best fit). Its revenue is up 14% over last year.
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. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Pioneering Technology Corp. Been A Good Investment?
Since shareholders would have lost about 91% over three years, some Pioneering Technology Corp. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Kevin Callahan is paid around what is normal for the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. On another note, Pioneering Technology has 5 warning signs (and 2 which can't be ignored) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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.