Why Added Capital Inc’s (CVE:AAD) CEO Pay Matters To You

In 2000 Vic Alboini was appointed CEO of Added Capital Inc (CVE:AAD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.

Check out our latest analysis for Added Capital

How Does Vic Alboini’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Added Capital Inc has a market cap of CA$341k, and is paying total annual CEO compensation of CA$149k. We note that’s an increase of 154% above last year. We examined a group of similar sized companies, with market capitalizations of below CA$262m. The median CEO compensation in that group is CA$155k.

So Vic Alboini is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Added Capital, below.

TSXV:AAD CEO Compensation November 9th 18
TSXV:AAD CEO Compensation November 9th 18

Is Added Capital Inc Growing?

On average over the last three years, Added Capital Inc has shrunk earnings per share by 94% each year. It saw its revenue drop -43% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this free more detailed historical graph of earnings, revenue and cash flow.

Has Added Capital Inc Been A Good Investment?

Boasting a total shareholder return of 33% over three years, Added Capital Inc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Vic Alboini is paid around the same as most CEOs of similar size companies.

The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn’t be too worried about CEO compensation, which is close to the median for similar sized companies. I like to look well beyond the CEO remuneration, when I research a company. So it makes sense to check how long the Board of Directors has been in place.

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.