Yahoo Finance Is Canada Energy Partners Inc (CVE:CE) Overpaying Its CEO?
In 2007 Ben Jones was appointed CEO of Canada Energy Partners Inc (CVE:CE). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Canada Energy Partners
How Does Ben Jones’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Canada Energy Partners Inc has a market cap of CA$904k, and is paying total annual CEO compensation of CA$248k. That’s less than last year. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO compensation to be CA$154k.
It would therefore appear that Canada Energy Partners Inc pays Ben Jones more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Canada Energy Partners has changed from year to year.
Is Canada Energy Partners Inc Growing?
Over the last three years Canada Energy Partners Inc has grown its earnings per share (EPS) by an average of 63% per year. Its revenue is up 97% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Canada Energy Partners Inc Been A Good Investment?
Most shareholders would probably be pleased with Canada Energy Partners Inc for providing a total return of 100% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at Canada Energy Partners Inc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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.
