How Should Investors React To AcuityAds Holdings Inc.'s (TSE:AT) CEO Pay?

Tal Hayek became the CEO of AcuityAds Holdings Inc. (TSE:AT) in 2009. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for AcuityAds Holdings

How Does Tal Hayek's Compensation Compare With Similar Sized Companies?

Our data indicates that AcuityAds Holdings Inc. is worth CA$61m, and total annual CEO compensation is CA$334k. (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$180k. We took a group of companies with market capitalizations below CA$265m, and calculated the median CEO total compensation to be CA$132k.

As you can see, Tal Hayek is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AcuityAds Holdings Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at AcuityAds Holdings, below.

Is AcuityAds Holdings Inc. Growing?

On average over the last three years, AcuityAds Holdings Inc. has shrunk earnings per share by 48% each year (measured with a line of best fit). In the last year, its revenue is up 64%.

Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch.

Has AcuityAds Holdings Inc. Been A Good Investment?

With a three year total loss of 15%, AcuityAds Holdings Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at AcuityAds Holdings Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AcuityAds Holdings.

If you want to buy a stock that is better than AcuityAds Holdings, this free list of high return, low debt companies is a great place to look.

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 editorial-team@simplywallst.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.