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Is Ascendant Resources Inc. (TSE:ASND) Overpaying Its CEO?

Simply Wall St

Chris Buncic has been the CEO of Ascendant Resources Inc. (TSE:ASND) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Ascendant Resources

How Does Chris Buncic's Compensation Compare With Similar Sized Companies?

Our data indicates that Ascendant Resources Inc. is worth CA$30m, and total annual CEO compensation is US$513k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$257k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$98k.

Thus we can conclude that Chris Buncic receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ascendant Resources Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Ascendant Resources has changed from year to year.

TSX:ASND CEO Compensation, August 6th 2019
TSX:ASND CEO Compensation, August 6th 2019

Is Ascendant Resources Inc. Growing?

Over the last three years Ascendant Resources Inc. has grown its earnings per share (EPS) by an average of 52% per year (using a line of best fit). Its revenue is down -5.0% over 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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Ascendant Resources Inc. Been A Good Investment?

I think that the total shareholder return of 95%, over three years, would leave most Ascendant Resources Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared the total CEO remuneration paid by Ascendant Resources Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Ascendant Resources shares (free trial).

If you want to buy a stock that is better than Ascendant Resources, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.