In 2005 Audrey Mascarenhas was appointed CEO of Questor Technology Inc. (CVE:QST). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Audrey Mascarenhas’s Compensation Compare With Similar Sized Companies?
According to our data, Questor Technology Inc. has a market capitalization of CA$124m, and pays its CEO total annual compensation worth CA$392k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$260k. We examined a group of similar sized companies, with market capitalizations of below CA$266m. The median CEO total compensation in that group is CA$138k.
It would therefore appear that Questor Technology Inc. pays Audrey Mascarenhas 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Questor Technology has changed from year to year.
Is Questor Technology Inc. Growing?
Questor Technology Inc. has increased its earnings per share (EPS) by an average of 98% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Has Questor Technology Inc. Been A Good Investment?
I think that the total shareholder return of 469%, over three years, would leave most Questor Technology Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Questor Technology Inc., and compared it to remuneration at a group of similar sized companies. 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. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Questor Technology (free visualization of insider trades).
Important note: Questor Technology 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.
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