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How Should Investors React To CIM International Group Inc.'s (CNSX:CIM) CEO Pay?

Simply Wall St

Jerry Feng has been the CEO of CIM International Group Inc. (CNSX:CIM) since 2016. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

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See our latest analysis for CIM International Group

How Does Jerry Feng's Compensation Compare With Similar Sized Companies?

Our data indicates that CIM International Group Inc. is worth CA$8.8m, and total annual CEO compensation is CA$232k. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$232k. We looked at a group of companies with market capitalizations under CA$269m, and the median CEO total compensation was CA$148k.

It would therefore appear that CIM International Group Inc. pays Jerry Feng 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at CIM International Group has changed over time.

CNSX:CIM CEO Compensation, May 16th 2019

Is CIM International Group Inc. Growing?

On average over the last three years, CIM International Group Inc. has grown earnings per share (EPS) by 122% each year (using a line of best fit). It achieved revenue growth of 66% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has CIM International Group Inc. Been A Good Investment?

With a three year total loss of 86%, CIM International Group Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by CIM International Group 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying CIM International Group shares with their own money (free access).

Important note: CIM International Group 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.

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.