Rick Mills has been the CEO of Creative Realities, Inc. (NASDAQ:CREX) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rick Mills's Compensation Compare With Similar Sized Companies?
According to our data, Creative Realities, Inc. has a market capitalization of US$13m, and paid its CEO total annual compensation worth US$743k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$330k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.
As you can see, Rick Mills is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Creative Realities, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Creative Realities, below.
Is Creative Realities, Inc. Growing?
Over the last three years Creative Realities, Inc. has grown its earnings per share (EPS) by an average of 5.1% per year (using a line of best fit). Its revenue is up 44% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.
Has Creative Realities, Inc. Been A Good Investment?
Since shareholders would have lost about 78% over three years, some Creative Realities, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Creative Realities, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Creative Realities.
Important note: Creative Realities 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.
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