Brian Howlett has been the CEO of Dundee Sustainable Technologies Inc. (FRA:C3X1) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Dundee Sustainable Technologies
How Does Brian Howlett's Compensation Compare With Similar Sized Companies?
Our data indicates that Dundee Sustainable Technologies Inc. is worth €5.3m, and total annual CEO compensation was reported as CA$186k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$186k. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO total compensation was CA$558k.
Most shareholders would consider it a positive that Brian Howlett takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Dundee Sustainable Technologies has changed over time.
Is Dundee Sustainable Technologies Inc. Growing?
Dundee Sustainable Technologies Inc. has reduced its earnings per share by an average of 1.5% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 33%.
The lack of earnings per share growth in the last three years is unimpressive. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Dundee Sustainable Technologies Inc. Been A Good Investment?
Since shareholders would have lost about 82% over three years, some Dundee Sustainable Technologies Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It appears that Dundee Sustainable Technologies Inc. remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Brian Howlett is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Dundee Sustainable Technologies shares (free trial).