Yahoo Finance Is Cervus Equipment Corporation’s (TSE:CERV) CEO Being Overpaid?
In 2012 Graham Drake was appointed CEO of Cervus Equipment Corporation (TSE:CERV). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Cervus Equipment
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How Does Graham Drake’s Compensation Compare With Similar Sized Companies?
According to our data, Cervus Equipment Corporation has a market capitalization of CA$214m, and pays its CEO total annual compensation worth CA$884k. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$415k. When we examined a selection of companies with market caps ranging from CA$133m to CA$530m, we found the median CEO compensation was CA$889k.
So Graham Drake is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Cervus Equipment has changed from year to year.
Is Cervus Equipment Corporation Growing?
Over the last three years Cervus Equipment Corporation has grown its earnings per share (EPS) by an average of 76% per year (using a line of best fit). It achieved revenue growth of 8.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Cervus Equipment Corporation Been A Good Investment?
Cervus Equipment Corporation has served shareholders reasonably well, with a total return of 22% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Graham Drake is paid around what is normal the leaders of comparable size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Cervus Equipment insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past 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.
