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Is GVIC Communications Corp.'s (TSE:GCT) CEO Overpaid Relative To Its Peers? - Yahoo Finance

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. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for GVIC Communications

How Does Jonathon James Kennedy's Compensation Compare With Similar Sized Companies?

Our data indicates that GVIC Communications Corp. is worth CA$26m, and total annual CEO compensation was reported as CA$639k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$354k. We took a group of companies with market capitalizations below CA$265m, and calculated the median CEO total compensation to be CA$205k.

It would therefore appear that GVIC Communications Corp. pays Jonathon James Kennedy more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at GVIC Communications has changed over time.

TSX:GCT CEO Compensation, February 18th 2020

Is GVIC Communications Corp. Growing?

GVIC Communications Corp. has increased its earnings per share (EPS) by an average of 145% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has GVIC Communications Corp. Been A Good Investment?

With a three year total loss of 5.0%, GVIC Communications Corp. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by GVIC Communications Corp., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying GVIC Communications shares with their own money (free access).

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

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.

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. Thank you for reading.

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Is GVIC Communications Corp.'s (TSE:GCT) CEO Overpaid Relative To Its Peers? - Yahoo Finance
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