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Is Sylogist Ltd.'s (CVE:SYZ) CEO Pay Fair?

Simply Wall St

Jim Wilson has been the CEO of Sylogist Ltd. (CVE:SYZ) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for Sylogist

How Does Jim Wilson's Compensation Compare With Similar Sized Companies?

Our data indicates that Sylogist Ltd. is worth CA$243m, and total annual CEO compensation is CA$2.3m. (This figure is for the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$550k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$134m to CA$535m. The median total CEO compensation was CA$807k.

Thus we can conclude that Jim Wilson receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sylogist Ltd.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

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

TSXV:SYZ CEO Compensation, April 16th 2019

Is Sylogist Ltd. Growing?

Sylogist Ltd. has increased its earnings per share (EPS) by an average of 38% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 14%.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Sylogist Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Sylogist Ltd. for providing a total return of 33% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Sylogist Ltd., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Sylogist shares with their own money (free access).

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.

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.