In 2007 Sholom Feldman was appointed CEO of Cann Global Limited (ASX:CGB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Cann Global
How Does Sholom Feldman's Compensation Compare With Similar Sized Companies?
Our data indicates that Cann Global Limited is worth AU$32m, and total annual CEO compensation was reported as AU$312k for the year to June 2019. Notably, the salary of AU$312k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$301m, and the median CEO total compensation was AU$387k.
That means Sholom Feldman receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Cann Global, below.
Is Cann Global Limited Growing?
Cann Global Limited has reduced its earnings per share by an average of 26% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 78%.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Cann Global Limited Been A Good Investment?
Given the total loss of 17% over three years, many shareholders in Cann Global Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Sholom Feldman is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Shareholders may want to check for free if Cann Global insiders are buying or selling shares.
If you want to buy a stock that is better than Cann Global, 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.
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