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How Should Investors React To Mission Ready Solutions Inc.'s (CVE:MRS) CEO Pay?

Simply Wall St

In 2017 Jeff Schwartz was appointed CEO of Mission Ready Solutions Inc. (CVE:MRS). 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.

View our latest analysis for Mission Ready Solutions

How Does Jeff Schwartz's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Mission Ready Solutions Inc. has a market cap of CA$30m, and reported total annual CEO compensation of CA$292k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$292k. We examined a group of similar sized companies, with market capitalizations of below CA$266m. The median CEO total compensation in that group is CA$180k.

As you can see, Jeff Schwartz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mission Ready Solutions Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Mission Ready Solutions has changed from year to year.

TSXV:MRS CEO Compensation, December 4th 2019

Is Mission Ready Solutions Inc. Growing?

Over the last three years Mission Ready Solutions Inc. has grown its earnings per share (EPS) by an average of 8.8% per year (using a line of best fit). In the last year, its revenue is up 336%.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Mission Ready Solutions Inc. Been A Good Investment?

Mission Ready Solutions Inc. has not done too badly by shareholders, with a total return of 2.9%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at Mission Ready Solutions Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Mission Ready Solutions.

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

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.

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.