In 2012 Jim Payne was appointed CEO of dynaCERT Inc. (CVE:DYA). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Jim Payne’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that dynaCERT Inc. has a market cap of CA$293m, and reported total annual CEO compensation of CA$229k for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$217k. We examined companies with market caps from CA$133m to CA$530m, and discovered that the median CEO total compensation of that group was CA$902k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at dynaCERT has changed over time.
Is dynaCERT Inc. Growing?
Over the last three years dynaCERT Inc. has shrunk its earnings per share by an average of 31% per year (measured with a line of best fit). Its revenue is up 252% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It’s hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has dynaCERT Inc. Been A Good Investment?
dynaCERT Inc. has served shareholders reasonably well, with a total return of 26% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
It appears that dynaCERT Inc. remunerates its CEO below most similar sized companies.
Jim Payne receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, from my perspective. But on this analysis I see no issue with the CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling dynaCERT (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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