Does FLYHT Aerospace Solutions Ltd’s (CVE:FLY) CEO Pay Matter?

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In 2015 Tom Schmutz was appointed CEO of FLYHT Aerospace Solutions Ltd (CVE:FLY). 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for FLYHT Aerospace Solutions

How Does Tom Schmutz’s Compensation Compare With Similar Sized Companies?

Our data indicates that FLYHT Aerospace Solutions Ltd is worth CA$27m, and total annual CEO compensation is CA$492k. That’s below the compensation, last year. We examined a group of similar sized companies, with market capitalizations of below CA$262m. The median CEO compensation in that group is CA$155k.

As you can see, Tom Schmutz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean FLYHT Aerospace Solutions Ltd is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at FLYHT Aerospace Solutions, below.

TSXV:FLY CEO Compensation November 8th 18
TSXV:FLY CEO Compensation November 8th 18

Is FLYHT Aerospace Solutions Ltd Growing?

On average over the last three years, FLYHT Aerospace Solutions Ltd has grown earnings per share (EPS) by 53% each year. It saw its revenue drop -11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 FLYHT Aerospace Solutions Ltd Been A Good Investment?

With a three year total loss of 29%, FLYHT Aerospace Solutions Ltd would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared the total CEO remuneration paid by FLYHT Aerospace Solutions Ltd, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if FLYHT Aerospace Solutions Ltd insiders are buying or selling shares.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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