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Is Sangoma Technologies Corporation's (CVE:STC) CEO Pay Fair?

Simply Wall St

In 2010 Bill Wignall was appointed CEO of Sangoma Technologies Corporation (CVE:STC). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Sangoma Technologies

How Does Bill Wignall's Compensation Compare With Similar Sized Companies?

Our data indicates that Sangoma Technologies Corporation is worth CA$98m, and total annual CEO compensation was reported as CA$682k for the year to June 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$300k. We examined a group of similar sized companies, with market capitalizations of below CA$265m. The median CEO total compensation in that group is CA$161k.

Thus we can conclude that Bill Wignall receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sangoma Technologies Corporation. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Sangoma Technologies, below.

TSXV:STC CEO Compensation, October 15th 2019

Is Sangoma Technologies Corporation Growing?

Over the last three years Sangoma Technologies Corporation has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). Its revenue is up 104% over last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Sangoma Technologies Corporation Been A Good Investment?

I think that the total shareholder return of 326%, over three years, would leave most Sangoma Technologies Corporation 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.

In Summary...

We examined the amount Sangoma Technologies Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Sangoma Technologies shares with their own money (free access).

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.