In 2015 Rick Mills was appointed CEO of Creative Realities Inc (NASDAQ:CREX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 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$9.0m, and pays its CEO total annual compensation worth US$270k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$292k.
That means Rick Mills receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Creative Realities has changed from year to year.
Is Creative Realities Inc Growing?
Creative Realities Inc has increased its earnings per share (EPS) by an average of 21% a year, over the last three years In the last year, its revenue is up 12%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Creative Realities Inc Been A Good Investment?
Since shareholders would have lost about 59% over three years, some Creative Realities Inc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Remuneration for Rick Mills is close enough to the median pay for a CEO of a similar sized company .
We’d say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.