Yahoo Finance Does Delphi Energy Corp.'s (TSE:DEE) CEO Salary Compare Well With Others?
David Reid became the CEO of Delphi Energy Corp. (TSE:DEE) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Delphi Energy
How Does David Reid's Compensation Compare With Similar Sized Companies?
According to our data, Delphi Energy Corp. has a market capitalization of CA$15m, and pays its CEO total annual compensation worth CA$595k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$412k. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO total compensation was CA$143k.
Thus we can conclude that David Reid receives more in total compensation than the median of a group of companies in the same market, and of similar size to Delphi Energy Corp.. However, this doesn't necessarily mean the pay 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.
You can see, below, how CEO compensation at Delphi Energy has changed over time.
Is Delphi Energy Corp. Growing?
Over the last three years Delphi Energy Corp. has shrunk its earnings per share by an average of 7.4% per year (measured with a line of best fit). Its revenue is down -9.6% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Delphi Energy Corp. Been A Good Investment?
Given the total loss of 92% over three years, many shareholders in Delphi Energy Corp. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Delphi Energy Corp., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Delphi Energy (free visualization of insider trades).
If you want to buy a stock that is better than Delphi Energy, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
