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Is Mundoro Capital Inc. (CVE:MUN) Excessively Paying Its CEO?

Simply Wall St

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Teo Dechev became the CEO of Mundoro Capital Inc. (CVE:MUN) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for Mundoro Capital

How Does Teo Dechev's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Mundoro Capital Inc. has a market cap of CA$8.3m, and is paying total annual CEO compensation of CA$275k. (This is based on the year to December 2018). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$225k. We took a group of companies with market capitalizations below CA$267m, and calculated the median CEO total compensation to be CA$151k.

As you can see, Teo Dechev is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mundoro Capital Inc. 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.

You can see, below, how CEO compensation at Mundoro Capital has changed over time.

TSXV:MUN CEO Compensation, June 20th 2019

Is Mundoro Capital Inc. Growing?

Over the last three years Mundoro Capital Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). In the last year, its revenue is up 40%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Mundoro Capital Inc. Been A Good Investment?

Since shareholders would have lost about 11% over three years, some Mundoro Capital Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Mundoro Capital Inc. 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.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mundoro Capital (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.com. 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.