Jim Rakievich became the CEO of McCoy Global Inc. (TSE:MCB) in 2002. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Jim Rakievich's Compensation Compare With Similar Sized Companies?
Our data indicates that McCoy Global Inc. is worth CA$18m, and total annual CEO compensation was reported as CA$653k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$375k. We examined a group of similar sized companies, with market capitalizations of below CA$263m. The median CEO total compensation in that group is CA$224k.
Thus we can conclude that Jim Rakievich receives more in total compensation than the median of a group of companies in the same market, and of similar size to McCoy Global Inc.. However, this doesn't necessarily mean the pay 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 McCoy Global, below.
Is McCoy Global Inc. Growing?
On average over the last three years, McCoy Global Inc. has grown earnings per share (EPS) by 85% each year (using a line of best fit). In the last year, its revenue is up 21%.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has McCoy Global Inc. Been A Good Investment?
With a three year total loss of 68%, McCoy Global Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount McCoy Global Inc. pays its CEO, and compared it to the amount paid by 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. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at McCoy Global.
If you want to buy a stock that is better than McCoy Global, this free list of high return, low debt companies is a great place to look.
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