Does Points International's (TSE:PTS) CEO Salary Compare Well With The Performance Of The Company?
This article will reflect on the compensation paid to Rob MacLean who has served as CEO of Points International Ltd. (TSE:PTS) since 2000. This analysis will also assess whether Points International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Points International
How Does Total Compensation For Rob MacLean Compare With Other Companies In The Industry?
Our data indicates that Points International Ltd. has a market capitalization of CA$197m, and total annual CEO compensation was reported as US$1.3m for the year to December 2019. We note that's a decrease of 44% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$427k.
For comparison, other companies in the same industry with market capitalizations ranging between CA$130m and CA$521m had a median total CEO compensation of US$578k. Accordingly, our analysis reveals that Points International Ltd. pays Rob MacLean north of the industry median. Furthermore, Rob MacLean directly owns CA$4.1m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$427k | US$425k | 34% |
| Other | US$825k | US$1.8m | 66% |
| Total Compensation | US$1.3m | US$2.2m | 100% |
On an industry level, around 26% of total compensation represents salary and 74% is other remuneration. Points International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Points International Ltd.'s Growth Numbers
Points International Ltd.'s earnings per share (EPS) grew 17% per year over the last three years. In the last year, its revenue is down 31%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Points International Ltd. Been A Good Investment?
Points International Ltd. has not done too badly by shareholders, with a total return of 0.5%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
As we noted earlier, Points International pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.