How Should Investors Feel About Findev Inc.'s (CVE:FDI) CEO Pay?
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In 2016 Yisroel Weinreb was appointed CEO of Findev Inc. (CVE:FDI). 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 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.
View our latest analysis for Findev
How Does Yisroel Weinreb's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Findev Inc. has a market cap of CA$13m, and is paying total annual CEO compensation of CA$90k. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$90k. We looked at a group of companies with market capitalizations under CA$269m, and the median CEO total compensation was CA$145k.
A first glance this seems like a real positive for shareholders, since Yisroel Weinreb is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Findev has changed over time.
Is Findev Inc. Growing?
Over the last three years Findev Inc. has grown its earnings per share (EPS) by an average of 132% per year (using a line of best fit). In the last year, its revenue is down -7.6%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Findev Inc. Been A Good Investment?
With a three year total loss of 24%, Findev Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Findev Inc. is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we would not say that Yisroel Weinreb is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Findev.
If you want to buy a stock that is better than Findev, 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.
