Is CEMATRIX Corporation (CVE:CVX) Excessively Paying Its CEO?
In 2008 Jeff Kendrick was appointed CEO of CEMATRIX Corporation (CVE:CVX). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for CEMATRIX
How Does Jeff Kendrick's Compensation Compare With Similar Sized Companies?
Our data indicates that CEMATRIX Corporation is worth CA$31m, and total annual CEO compensation was reported as CA$161k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$151k. We took a group of companies with market capitalizations below CA$265m, and calculated the median CEO total compensation to be CA$205k.
That means Jeff Kendrick receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at CEMATRIX has changed from year to year.
Is CEMATRIX Corporation Growing?
CEMATRIX Corporation has reduced its earnings per share by an average of 9.1% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 95%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has CEMATRIX Corporation Been A Good Investment?
I think that the total shareholder return of 58%, over three years, would leave most CEMATRIX Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Jeff Kendrick is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CEMATRIX (free visualization of insider trades).
Important note: CEMATRIX 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.
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.
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