Marcel Kessler has been the CEO of Pason Systems Inc. (TSE:PSI) since 2011. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Marcel Kessler's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Pason Systems Inc. has a market cap of CA$1.5b, and is paying total annual CEO compensation of CA$2.3m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$540k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$529m to CA$2.1b. The median total CEO compensation was CA$2.1m.
So Marcel Kessler is paid around the average of the companies we looked at. 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 Pason Systems has changed from year to year.
Is Pason Systems Inc. Growing?
Pason Systems Inc. has increased its earnings per share (EPS) by an average of 115% a year, over the last three years (using a line of best fit). Its revenue is up 21% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Pason Systems Inc. Been A Good Investment?
Pason Systems Inc. has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Marcel Kessler is paid around the same as most CEOs of similar size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pason Systems.
If you want to buy a stock that is better than Pason Systems, this free list of high return, low debt companies is a great place to look.
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