Alex Ochoa became the CEO of Tower One Wireless Corp. (CSE:TO) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Tower One Wireless.
How Does Total Compensation For Alex Ochoa Compare With Other Companies In The Industry?
At the time of writing, our data shows that Tower One Wireless Corp. has a market capitalization of CA$4.7m, and reported total annual CEO compensation of US$265k for the year to December 2019. That's a notable increase of 17% on last year. Notably, the salary of US$265k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below CA$263m, we found that the median total CEO compensation was US$285k. From this we gather that Alex Ochoa is paid around the median for CEOs in the industry. Moreover, Alex Ochoa also holds CA$600k worth of Tower One Wireless stock directly under their own name.
On an industry level, roughly 28% of total compensation represents salary and 72% is other remuneration. At the company level, Tower One Wireless pays Alex Ochoa solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Tower One Wireless Corp.'s Growth Numbers
Over the past three years, Tower One Wireless Corp. has seen its earnings per share (EPS) grow by 37% per year. In the last year, its revenue is up 22%.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Tower One Wireless Corp. Been A Good Investment?
With a three year total loss of 86% for the shareholders, Tower One Wireless Corp. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
Tower One Wireless rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Tower One Wireless pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Alex is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Tower One Wireless that investors should be aware of in a dynamic business environment.
Important note: Tower One Wireless 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.
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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.
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