Does iQ3Corp Ltd's (ASX:IQ3) CEO Salary Reflect Performance?
George Syrmalis has been the CEO of iQ3Corp Ltd (ASX:IQ3) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for iQ3Corp
How Does George Syrmalis's Compensation Compare With Similar Sized Companies?
Our data indicates that iQ3Corp Ltd is worth AU$21m, and total annual CEO compensation was reported as AU$676k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$404k. We looked at a group of companies with market capitalizations under AU$305m, and the median CEO total compensation was AU$386k.
It would therefore appear that iQ3Corp Ltd pays George Syrmalis 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at iQ3Corp has changed from year to year.
Is iQ3Corp Ltd Growing?
Over the last three years iQ3Corp Ltd has grown its earnings per share (EPS) by an average of 71% per year (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. 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 iQ3Corp Ltd Been A Good Investment?
Given the total loss of 31% over three years, many shareholders in iQ3Corp Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at iQ3Corp Ltd 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. However, the returns to investors are far less impressive, over the same period. 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. Whatever your view on compensation, you might want to check if insiders are buying or selling iQ3Corp shares (free trial).
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.
