Steve Hudson became the CEO of ECN Capital Corp. (TSE:ECN) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Hudson's Compensation Compare With Similar Sized Companies?
According to our data, ECN Capital Corp. has a market capitalization of CA$1.1b, and paid its CEO total annual compensation worth US$4.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$963k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$1.6m.
As you can see, Steve Hudson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ECN Capital Corp. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at ECN Capital has changed from year to year.
Is ECN Capital Corp. Growing?
On average over the last three years, ECN Capital Corp. has shrunk earnings per share by 1.1% each year (measured with a line of best fit). It achieved revenue growth of 453% over the last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. 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 ECN Capital Corp. Been A Good Investment?
I think that the total shareholder return of 67%, over three years, would leave most ECN Capital Corp. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at ECN Capital Corp. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ECN Capital.
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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