Should You Worry About Sangoma Technologies Corporation’s (CVE:STC) CEO Pay?
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Bill Wignall has been the CEO of Sangoma Technologies Corporation (CVE:STC) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Sangoma Technologies
How Does Bill Wignall’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sangoma Technologies Corporation has a market cap of CA$75m, and is paying total annual CEO compensation of CA$682k. (This number is for the twelve months until 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$300k. We took a group of companies with market capitalizations below CA$263m, and calculated the median CEO compensation to be CA$157k.
It would therefore appear that Sangoma Technologies Corporation pays Bill Wignall more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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, below, how CEO compensation at Sangoma Technologies has changed over time.
Is Sangoma Technologies Corporation Growing?
On average over the last three years, Sangoma Technologies Corporation has grown earnings per share (EPS) by 62% each year (using a line of best fit). In the last year, its revenue is up 103%.
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 383%, 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 compared total CEO remuneration at Sangoma Technologies Corporation with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well 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).
Important note: Sangoma Technologies may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
