Doug Baird became the CEO of Appulse Corporation (CVE:APL) in 2004. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Doug Baird's Compensation Compare With Similar Sized Companies?
According to our data, Appulse Corporation has a market capitalization of CA$2.4m, and pays its CEO total annual compensation worth CA$151k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$133k. We examined a group of similar sized companies, with market capitalizations of below CA$264m. The median CEO total compensation in that group is CA$126k.
So Doug Baird is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Appulse, below.
Is Appulse Corporation Growing?
Over the last three years Appulse Corporation has grown its earnings per share (EPS) by an average of 4.3% per year (using a line of best fit). It achieved revenue growth of 13% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Appulse Corporation Been A Good Investment?
Appulse Corporation has generated a total shareholder return of 9.4% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Doug Baird is paid around what is normal the leaders of comparable size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. So you may want to check if insiders are buying Appulse shares with their own money (free access).
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.
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