Should You Worry About StorageVault Canada Inc.'s (CVE:SVI) CEO Pay Cheque?
Steven Scott has been the CEO of StorageVault Canada Inc. (CVE:SVI) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for StorageVault Canada
How Does Steven Scott's Compensation Compare With Similar Sized Companies?
Our data indicates that StorageVault Canada Inc. is worth CA$937m, and total annual CEO compensation is CA$575k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$30k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$537m to CA$2.1b. The median total CEO compensation was CA$2.0m.
A first glance this seems like a real positive for shareholders, since Steven Scott is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at StorageVault Canada has changed from year to year.
Is StorageVault Canada Inc. Growing?
Over the last three years StorageVault Canada Inc. has grown its earnings per share (EPS) by an average of 4.1% per year (using a line of best fit). In the last year, its revenue is up 56%.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future.
Has StorageVault Canada Inc. Been A Good Investment?
I think that the total shareholder return of 254%, over three years, would leave most StorageVault Canada Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
StorageVault Canada Inc. is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Steven Scott is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at StorageVault Canada.
If you want to buy a stock that is better than StorageVault Canada, 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.
