In 2010 Pat Goepel was appointed CEO of Asure Software, Inc. (NASDAQ:ASUR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Pat Goepel's Compensation Compare With Similar Sized Companies?
Our data indicates that Asure Software, Inc. is worth US$94m, and total annual CEO compensation was reported as US$969k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$350k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$571k.
Thus we can conclude that Pat Goepel receives more in total compensation than the median of a group of companies in the same market, and of similar size to Asure Software, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Asure Software has changed over time.
Is Asure Software, Inc. Growing?
Over the last three years Asure Software, Inc. has shrunk its earnings per share by an average of 37% per year (measured with a line of best fit). In the last year, its revenue is up 26%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Asure Software, Inc. Been A Good Investment?
With a three year total loss of 48%, Asure Software, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Asure Software, 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.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Moving away from CEO compensation for the moment, we've identified 4 warning signs for Asure Software that you should be aware of before investing.
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 email@example.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.