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How Should Investors React To Aurora Spine Corporation's (CVE:ASG) CEO Pay?

Simply Wall St

Trent Northcutt has been the CEO of Aurora Spine Corporation (CVE:ASG) since 2012. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Aurora Spine

How Does Trent Northcutt's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Aurora Spine Corporation has a market cap of CA$18m, and reported total annual CEO compensation of US$157k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$125k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$137k.

So Trent Northcutt is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Aurora Spine has changed over time.

TSXV:ASG CEO Compensation, October 25th 2019

Is Aurora Spine Corporation Growing?

On average over the last three years, Aurora Spine Corporation has grown earnings per share (EPS) by 52% each year (using a line of best fit). Its revenue is up 71% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Aurora Spine Corporation Been A Good Investment?

Aurora Spine Corporation has served shareholders reasonably well, with a total return of 22% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Trent Northcutt is paid around what is normal the leaders of comparable size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aurora Spine.

If you want to buy a stock that is better than Aurora Spine, this free list of high return, low debt companies is a great place to look.

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.