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Should You Worry About Currency Exchange International, Corp.'s (TSE:CXI) CEO Salary Level?

Simply Wall St

Randolph Pinna became the CEO of Currency Exchange International, Corp. (TSE:CXI) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Currency Exchange International

How Does Randolph Pinna's Compensation Compare With Similar Sized Companies?

According to our data, Currency Exchange International, Corp. has a market capitalization of CA$122m, and pays its CEO total annual compensation worth US$603k. (This number is for the twelve months until October 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$300k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$108k.

As you can see, Randolph Pinna is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Currency Exchange International, Corp. 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 Currency Exchange International has changed from year to year.

TSX:CXI CEO Compensation, August 28th 2019

Is Currency Exchange International, Corp. Growing?

Currency Exchange International, Corp. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. Its revenue is up 8.8% over last year.

I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.

Has Currency Exchange International, Corp. Been A Good Investment?

With a three year total loss of 28%, Currency Exchange International, Corp. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Currency Exchange International, Corp., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Currency Exchange International shares (free trial).

If you want to buy a stock that is better than Currency Exchange International, 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.