Yahoo Finance Is Cardinal Energy Ltd.'s (TSE:CJ) CEO Pay Fair?
In 2012 M. Ratushny was appointed CEO of Cardinal Energy Ltd. (TSE:CJ). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Cardinal Energy
How Does M. Ratushny's Compensation Compare With Similar Sized Companies?
Our data indicates that Cardinal Energy Ltd. is worth CA$252m, and total annual CEO compensation was reported as CA$1.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$320k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CA$132m to CA$529m, we found the median CEO total compensation was CA$877k.
It would therefore appear that Cardinal Energy Ltd. pays M. Ratushny 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Cardinal Energy has changed over time.
Is Cardinal Energy Ltd. Growing?
Over the last three years Cardinal Energy Ltd. has grown its earnings per share (EPS) by an average of 80% per year (using a line of best fit). It saw its revenue drop 15% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Cardinal Energy Ltd. Been A Good Investment?
With a three year total loss of 66%, Cardinal Energy Ltd. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Cardinal Energy Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cardinal Energy.
Important note: Cardinal Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
