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In 2007 Randolph Pinna was appointed CEO of Currency Exchange International, Corp. (TSE:CXI). 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Randolph Pinna’s Compensation Compare With Similar Sized Companies?
According to our data, Currency Exchange International, Corp. has a market capitalization of CA$149m, and pays its CEO total annual compensation worth US$603k. (This number is for the twelve months until October 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$300k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$113k.
Thus we can conclude that Randolph Pinna receives more in total compensation than the median of a group of companies in the same market, and of similar size to Currency Exchange International, 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.
The graphic below shows how CEO compensation at Currency Exchange International has changed from year to year.
Is Currency Exchange International, Corp. Growing?
Currency Exchange International, Corp. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 8.8%.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.
Has Currency Exchange International, Corp. Been A Good Investment?
Since shareholders would have lost about 10% over three years, some Currency Exchange International, Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Currency Exchange International, Corp. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Currency Exchange International.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.