A. Zerrouk became the CEO of Zecotek Photonics Inc. (CVE:ZMS) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does A. Zerrouk’s Compensation Compare With Similar Sized Companies?
Our data indicates that Zecotek Photonics Inc. is worth CA$7.4m, and total annual CEO compensation is CA$633k. (This is based on the year to July 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$138k. We took a group of companies with market capitalizations below CA$267m, and calculated the median CEO compensation to be CA$144k.
It would therefore appear that Zecotek Photonics Inc. pays A. Zerrouk 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Zecotek Photonics, below.
Is Zecotek Photonics Inc. Growing?
Zecotek Photonics Inc. has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is down -97% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Zecotek Photonics Inc. Been A Good Investment?
With a three year total loss of 82%, Zecotek Photonics Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Zecotek Photonics Inc., and compared it to remuneration at a group of similar sized companies. 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. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Zecotek Photonics insiders are buying or selling shares.
If you want to buy a stock that is better than Zecotek Photonics, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.