Our Take On Carl Data Solutions' (FRA:7C5) CEO Salary

Greg Johnston has been the CEO of Carl Data Solutions Inc. (FRA:7C5) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Carl Data Solutions

How Does Total Compensation For Greg Johnston Compare With Other Companies In The Industry?

At the time of writing, our data shows that Carl Data Solutions Inc. has a market capitalization of €5.0m, and reported total annual CEO compensation of CA$160k for the year to June 2020. Notably, that's an increase of 14% over the year before. Notably, the salary of CA$160k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under €168m, the reported median total CEO compensation was CA$648k. That is to say, Greg Johnston is paid under the industry median. Moreover, Greg Johnston also holds €68k worth of Carl Data Solutions stock directly under their own name.

Talking in terms of the industry, salary represented approximately 53% of total compensation out of all the companies we analyzed, while other remuneration made up 47% of the pie. At the company level, Carl Data Solutions pays Greg Johnston 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.

Carl Data Solutions Inc.'s Growth

Carl Data Solutions Inc.'s earnings per share (EPS) grew 48% per year over the last three years. In the last year, its revenue is up 54%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Carl Data Solutions Inc. Been A Good Investment?

Given the total shareholder loss of 77% over three years, many shareholders in Carl Data Solutions Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Carl Data Solutions pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Greg is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. But shareholders will likely want to hold off on any raise for Greg until investor returns are positive.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 6 warning signs for Carl Data Solutions you should be aware of, and 3 of them are concerning.

Important note: Carl Data Solutions 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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