Yahoo Finance Is Bonterra Energy Corp (TSE:BNE) Excessively Paying Its CEO?
In 1981 George Fink was appointed CEO of Bonterra Energy Corp (TSE:BNE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Bonterra Energy
How Does George Fink’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bonterra Energy Corp has a market cap of CA$469m, and is paying total annual CEO compensation of CA$604k. That’s just a smallish increase of 6.2% on last year. When we examined a selection of companies with market caps ranging from CA$262m to CA$1.0b, we found the median CEO compensation was CA$1m.
A first glance this seems like a real positive for shareholders, since George Fink is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Bonterra Energy has changed over time.
Is Bonterra Energy Corp Growing?
Over the last three years Bonterra Energy Corp has grown its earnings per share (EPS) by an average of 81% per year. In the last year, its revenue is up 12%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Bonterra Energy Corp Been A Good Investment?
With a three year total loss of 25%, Bonterra Energy Corp would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
It looks like Bonterra Energy Corp pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that George Fink is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shareholders may want to check for free if Bonterra Energy Corp insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.
