In 2014 Chris Noone was appointed CEO of Collaborate Corporation Limited (ASX:CL8). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Collaborate

How Does Chris Noone's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Collaborate Corporation Limited has a market cap of AU$8.9m, and reported total annual CEO compensation of AU$384k for the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$225k. We took a group of companies with market capitalizations below AU$295m, and calculated the median CEO total compensation to be AU$374k.

That means Chris Noone receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

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

Is Collaborate Corporation Limited Growing?

Over the last three years Collaborate Corporation Limited has grown its earnings per share (EPS) by an average of 3.1% per year (using a line of best fit). Its revenue is down 14% over last year.

I would prefer it if there was revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Collaborate Corporation Limited Been A Good Investment?

With a three year total loss of 50%, Collaborate Corporation Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Chris Noone is close enough to the median pay for a CEO of a similar sized company .

The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Collaborate (free visualization of insider trades).

Important note: Collaborate may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.