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Is Mobio Technologies Inc. (CVE:MBO) Overpaying Its CEO?

Simply Wall St

Laurie Baggio became the CEO of Mobio Technologies Inc. (CVE:MBO) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Mobio Technologies

How Does Laurie Baggio's Compensation Compare With Similar Sized Companies?

Our data indicates that Mobio Technologies Inc. is worth CA$2.7m, and total annual CEO compensation was reported as CA$120k for the year to July 2018. Notably, the salary of CA$120k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$180k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Mobio Technologies has changed from year to year.

TSXV:MBO CEO Compensation, December 4th 2019

Is Mobio Technologies Inc. Growing?

Over the last three years Mobio Technologies Inc. has grown its earnings per share (EPS) by an average of 124% per year (using a line of best fit). In the last year, its revenue is down 36%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. 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 Mobio Technologies Inc. Been A Good Investment?

Given the total loss of 56% over three years, many shareholders in Mobio Technologies Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

It looks like Mobio Technologies Inc. pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don't think, Laurie Baggio is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Mobio Technologies.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.