Yahoo Finance What Does Cobra Venture's (CVE:CBV) CEO Pay Reveal?
Dan Evans has been the CEO of Cobra Venture Corporation (CVE:CBV) since 1998, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Cobra Venture
Comparing Cobra Venture Corporation's CEO Compensation With the industry
According to our data, Cobra Venture Corporation has a market capitalization of CA$1.1m, and paid its CEO total annual compensation worth CA$224k over the year to November 2019. That is, the compensation was roughly the same as last year. In particular, the salary of CA$220.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$266m, reported a median total CEO compensation of CA$358k. Accordingly, Cobra Venture pays its CEO under the industry median.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$220k | CA$220k | 98% |
Other | CA$4.0k | CA$4.0k | 2% |
Total Compensation | CA$224k | CA$224k | 100% |
Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. Cobra Venture is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Cobra Venture Corporation's Growth Numbers
Cobra Venture Corporation has seen its earnings per share (EPS) increase by 87% a year over the past three years. Its revenue is down 8.0% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cobra Venture Corporation Been A Good Investment?
Given the total shareholder loss of 33% over three years, many shareholders in Cobra Venture Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Cobra Venture pays its CEO a majority of compensation through a salary. As we noted earlier, Cobra Venture pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However we must not forget that the EPS growth has been very strong over three years. Considering EPS are on the up, we would say Dan is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Cobra Venture that investors should be aware of in a dynamic business environment.
Switching gears from Cobra Venture, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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