Randolph Pinna has been the CEO of Currency Exchange International, Corp. (TSE:CXI) since 2007, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Currency Exchange International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Currency Exchange International, Corp.'s CEO Compensation With the industry
Our data indicates that Currency Exchange International, Corp. has a market capitalization of CA$77m, and total annual CEO compensation was reported as US$556k for the year to October 2019. That's a slightly lower by 7.9% over the previous year. Notably, the salary which is US$325.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under CA$266m, the reported median total CEO compensation was US$637k. From this we gather that Randolph Pinna is paid around the median for CEOs in the industry. Moreover, Randolph Pinna also holds CA$17m worth of Currency Exchange International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that Currency Exchange International pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Currency Exchange International, Corp.'s Growth Numbers
Over the last three years, Currency Exchange International, Corp. has shrunk its earnings per share by 50% per year. Its revenue is down 22% over the previous year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Currency Exchange International, Corp. Been A Good Investment?
With a three year total loss of 53% for the shareholders, Currency Exchange International, Corp. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, Currency Exchange International pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Currency Exchange International (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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