Here's What We Think About SQI Diagnostics Inc.'s (CVE:SQD) CEO Pay

Andrew Morris became the CEO of SQI Diagnostics Inc. (CVE:SQD) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for SQI Diagnostics

How Does Andrew Morris's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that SQI Diagnostics Inc. has a market cap of CA$20m, and reported total annual CEO compensation of CA$330k for the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at CA$300k. We looked at a group of companies with market capitalizations under CA$263m, and the median CEO total compensation was CA$211k.

Thus we can conclude that Andrew Morris receives more in total compensation than the median of a group of companies in the same market, and of similar size to SQI Diagnostics Inc.. However, this doesn't necessarily mean the pay 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 a visual representation of the CEO compensation at SQI Diagnostics, below.

Is SQI Diagnostics Inc. Growing?

Over the last three years SQI Diagnostics Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). Its revenue is up 42% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. 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 SQI Diagnostics Inc. Been A Good Investment?

Since shareholders would have lost about 45% over three years, some SQI Diagnostics Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by SQI Diagnostics Inc., 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying SQI Diagnostics shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.