In 2006 Jonathon James Kennedy was appointed CEO of GVIC Communications Corp (TSE:GCT). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jonathon James Kennedy's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that GVIC Communications Corp has a market cap of CA$33m, and is paying total annual CEO compensation of CA$551k. That's a notable increase of 27% on last year. We took a group of companies with market capitalizations below CA$259m, and calculated the median CEO compensation to be CA$151k.
Thus we can conclude that Jonathon James Kennedy receives more in total compensation than the median of a group of companies in the same market, and of similar size to GVIC Communications Corp. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
Is GVIC Communications Corp Growing?
Over the last three years GVIC Communications Corp has grown its earnings per share (EPS) by an average of 70% per year. It saw its revenue drop -4.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business.
Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has GVIC Communications Corp Been A Good Investment?
With a three year total loss of 42%, GVIC Communications Corp would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We the total CEO remuneration paid by GVIC Communications Corp, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying GVIC Communications Corp shares with their own money (free access).
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 email@example.com.