In This Article:
Yakov Temov has been the CEO of Connected IO Limited (ASX:CIO) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Connected IO
How Does Yakov Temov’s Compensation Compare With Similar Sized Companies?
Our data indicates that Connected IO Limited is worth AU$5.2m, and total annual CEO compensation is AU$298k. (This number is for the twelve months until 2018). We note that’s an increase of 47% above last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$298k. We looked at a group of companies with market capitalizations under AU$272m, and the median CEO compensation was AU$362k.
That means Yakov Temov receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Connected IO has changed from year to year.
Is Connected IO Limited Growing?
Over the last three years Connected IO Limited has grown its earnings per share (EPS) by an average of 98% per year. In the last year, its revenue is down -1.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Connected IO Limited Been A Good Investment?
Since shareholders would have lost about 94% over three years, some Connected IO Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Remuneration for Yakov Temov is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Connected IO shares (free trial).