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Randolph Pinna has been the CEO of Currency Exchange International, Corp. (TSE:CXI) since 2007, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Currency Exchange International.
View our latest analysis for Currency Exchange International
How Does Total Compensation For Randolph Pinna Compare With Other Companies In The Industry?
According to our data, Currency Exchange International, Corp. has a market capitalization of CA$69m, and paid its CEO total annual compensation worth US$556k over the year to October 2019. We note that’s a small decrease of 7.9% on last year. We note that the salary portion, which stands at US$325.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under CA$271m, the reported median total CEO compensation was US$628k. So it looks like Currency Exchange International compensates Randolph Pinna in line with the median for the industry. Furthermore, Randolph Pinna directly owns CA$15m worth of shares in the company, implying that they are deeply invested in the company’s success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$325k | US$300k | 58% |
| Other | US$231k | US$303k | 42% |
| Total Compensation | US$556k | US$603k | 100% |
Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. It’s interesting to note that Currency Exchange International pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.
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Currency Exchange International, Corp.’s Growth
Over the last three years, Currency Exchange International, Corp. has shrunk its earnings per share by 22% per year. In the last year, its revenue changed by just 0.9%.
Few shareholders would be pleased to read that earnings have declined. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Currency Exchange International, Corp. Been A Good Investment?
With a three year total loss of 54% for the shareholders, Currency Exchange International, Corp. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary…
As we touched on above, Currency Exchange International, Corp. is currently paying a compensation that’s close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, earnings growth and total shareholder return have been negative for the last three years. It’s tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is significant) in Currency Exchange International we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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