Is Quantum International Income Corp’s (CVE:QIC) CEO Being Overpaid?

Manu Sekhri became the CEO of Quantum International Income Corp (CVE:QIC) in 2015. 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. 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.

See our latest analysis for Quantum International Income

How Does Manu Sekhri’s Compensation Compare With Similar Sized Companies?

According to our data, Quantum International Income Corp has a market capitalization of CA$74m, and pays its CEO total annual compensation worth US$716k. That’s a notable increase of 217% on last year. We looked at a group of companies with market capitalizations under CA$261m, and the median CEO compensation was CA$152k.

Thus we can conclude that Manu Sekhri receives more in total compensation than the median of a group of companies in the same market, and of similar size to Quantum International Income Corp. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at Quantum International Income has changed over time.

TSXV:QIC CEO Compensation October 12th 18
TSXV:QIC CEO Compensation October 12th 18

Is Quantum International Income Corp Growing?

On average over the last three years, Quantum International Income Corp has grown earnings per share (EPS) by 43% each year. Its revenue is up 224% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Quantum International Income Corp Been A Good Investment?

Quantum International Income Corp has served shareholders reasonably well, with a total return of 27% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

We examined the amount Quantum International Income Corp pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. Shareholders may want to check for free if Quantum International Income Corp insiders are buying or selling shares.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.