How Much is Route1 Inc.'s (CVE:ROI) CEO Getting Paid?
In 2010 Tony Busseri was appointed CEO of Route1 Inc. (CVE:ROI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Route1
How Does Tony Busseri's Compensation Compare With Similar Sized Companies?
According to our data, Route1 Inc. has a market capitalization of CA$17m, and paid its CEO total annual compensation worth CA$335k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$335k. We examined a group of similar sized companies, with market capitalizations of below CA$265m. The median CEO total compensation in that group is CA$206k.
As you can see, Tony Busseri is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Route1 Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Route1 has changed over time.
Is Route1 Inc. Growing?
Route1 Inc. has reduced its earnings per share by an average of 90% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 16% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Route1 Inc. Been A Good Investment?
Route1 Inc. has generated a total shareholder return of 6.7% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared the total CEO remuneration paid by Route1 Inc., 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.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. And shareholder returns are decent but not great. So you may want to delve deeper, because we don't think the CEO pay is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Route1.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
