What Does Quorum Information Technologies' (CVE:QIS) CEO Pay Reveal?

The CEO of Quorum Information Technologies Inc. (CVE:QIS) is Maury Marks, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Quorum Information Technologies

How Does Total Compensation For Maury Marks Compare With Other Companies In The Industry?

At the time of writing, our data shows that Quorum Information Technologies Inc. has a market capitalization of CA$80m, and reported total annual CEO compensation of CA$237k for the year to December 2019. That's a notable decrease of 14% on last year. In particular, the salary of CA$230.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below CA$266m, reported a median total CEO compensation of CA$201k. From this we gather that Maury Marks is paid around the median for CEOs in the industry. What's more, Maury Marks holds CA$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Quorum Information Technologies is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Quorum Information Technologies Inc.'s Growth Numbers

Quorum Information Technologies Inc. has reduced its earnings per share by 94% a year over the last three years. In the last year, its revenue is up 67%.

The decrease in earnings could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Quorum Information Technologies Inc. Been A Good Investment?

Boasting a total shareholder return of 62% over three years, Quorum Information Technologies Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Quorum Information Technologies pays its CEO a majority of compensation through a salary. As we touched on above, Quorum Information Technologies Inc. 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. Investors will be happy that Quorum Information Technologies has produced strong shareholder returns for the past three years. Revenues have also showed some positive momentum, recently. On a sour note, EPS growth has been negative. Considering overall performance, it's fair to say Maury is paid reasonably.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Quorum Information Technologies that investors should be aware of in a dynamic business environment.

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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