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Should You Worry About Reliq Health Technologies Inc.'s (CVE:RHT) CEO Pay Cheque?

Simply Wall St

In 2016 Lisa Crossley was appointed CEO of Reliq Health Technologies Inc. (CVE:RHT). 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. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Reliq Health Technologies

How Does Lisa Crossley's Compensation Compare With Similar Sized Companies?

Our data indicates that Reliq Health Technologies Inc. is worth CA$81m, and total annual CEO compensation was reported as CA$227k for the year to June 2019. Notably, the salary of CA$227k is the vast majority of the CEO compensation. 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$206k.

So Lisa Crossley is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Reliq Health Technologies has changed from year to year.

TSXV:RHT CEO Compensation, February 17th 2020

Is Reliq Health Technologies Inc. Growing?

Over the last three years Reliq Health Technologies Inc. has shrunk its earnings per share by an average of 39% per year (measured with a line of best fit). In the last year, its revenue is down 77%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Reliq Health Technologies Inc. Been A Good Investment?

Boasting a total shareholder return of 372% over three years, Reliq Health Technologies Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Lisa Crossley is close enough to the median pay for a CEO of a similar sized company .

The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Reliq Health Technologies.

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

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.

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. Thank you for reading.