A Look At ProntoForms' (CVE:PFM) CEO Remuneration

The CEO of ProntoForms Corporation (CVE:PFM) is Alvaro Pombo, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether ProntoForms pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for ProntoForms

How Does Total Compensation For Alvaro Pombo Compare With Other Companies In The Industry?

Our data indicates that ProntoForms Corporation has a market capitalization of CA$114m, and total annual CEO compensation was reported as CA$415k for the year to December 2019. Notably, that's an increase of 43% over the year before. We note that the salary portion, which stands at US$213.4k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below CA$257m, reported a median total CEO compensation of CA$224k. This suggests that Alvaro Pombo is paid more than the median for the industry. What's more, Alvaro Pombo holds CA$4.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. It's interesting to note that ProntoForms allocates a smaller portion of compensation to salary in comparison to the broader 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 ProntoForms Corporation's Growth Numbers

ProntoForms Corporation's earnings per share (EPS) grew 40% per year over the last three years. It achieved revenue growth of 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ProntoForms Corporation Been A Good Investment?

We think that the total shareholder return of 157%, over three years, would leave most ProntoForms Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As previously discussed, Alvaro is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, ProntoForms has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Alvaro's performance creates value for the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 3 warning signs for ProntoForms that investors should be aware of in a dynamic business environment.

Important note: ProntoForms is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

When trading ProntoForms or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.