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Is Wi2Wi Corporation's (CVE:YTY) CEO Pay Justified?

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Zach Mathews became the CEO of Wi2Wi Corporation (CVE:YTY) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

See our latest analysis for Wi2Wi

How Does Zach Mathews's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Wi2Wi Corporation has a market cap of CA$12m, and is paying total annual CEO compensation of US$215k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$177k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$107k.

As you can see, Zach Mathews is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Wi2Wi Corporation is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Wi2Wi has changed from year to year.

TSXV:YTY CEO Compensation, May 2nd 2019
TSXV:YTY CEO Compensation, May 2nd 2019

Is Wi2Wi Corporation Growing?

Over the last three years Wi2Wi Corporation has shrunk its earnings per share by an average of 97% per year (measured with a line of best fit). It achieved revenue growth of 1.1% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has Wi2Wi Corporation Been A Good Investment?

With a total shareholder return of 14% over three years, Wi2Wi Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at Wi2Wi Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

And shareholder returns are decent but not great. So we think more research is needed, but we don't think the CEO underpaid. Shareholders may want to check for free if Wi2Wi insiders are buying or selling shares.

If you want to buy a stock that is better than Wi2Wi, this free list of high return, low debt companies is a great place to look.

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.