Brian Balbirnie has been the CEO of Issuer Direct Corporation (NYSEMKT:ISDR) since 2006. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Brian Balbirnie's Compensation Compare With Similar Sized Companies?
Our data indicates that Issuer Direct Corporation is worth US$41m, and total annual CEO compensation was reported as US$218k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$200k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$506k.
Most shareholders would consider it a positive that Brian Balbirnie takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Issuer Direct, below.
Is Issuer Direct Corporation Growing?
On average over the last three years, Issuer Direct Corporation has shrunk earnings per share by 25% each year (measured with a line of best fit). It achieved revenue growth of 14% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Issuer Direct Corporation Been A Good Investment?
Boasting a total shareholder return of 53% over three years, Issuer Direct Corporation has done well by shareholders. 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.
It appears that Issuer Direct Corporation remunerates its CEO below most similar sized companies.
Brian Balbirnie is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. So you may want to check if insiders are buying Issuer Direct shares with their own money (free access).
Important note: Issuer Direct 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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.