Yahoo Finance Does Legend Power Systems Inc.'s (CVE:LPS) CEO Salary Compare Well With Others?
Randy Buchamer is the CEO of Legend Power Systems Inc. (CVE:LPS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Legend Power Systems
How Does Randy Buchamer's Compensation Compare With Similar Sized Companies?
Our data indicates that Legend Power Systems Inc. is worth CA$25m, and total annual CEO compensation was reported as CA$241k for the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$225k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$209k.
So Randy Buchamer is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Legend Power Systems, below.
Is Legend Power Systems Inc. Growing?
Legend Power Systems Inc. has reduced its earnings per share by an average of 17% a year, over the last three years (measured with a line of best fit). Its revenue is down 65% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Legend Power Systems Inc. Been A Good Investment?
Given the total loss of 18% over three years, many shareholders in Legend Power Systems Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Randy Buchamer is paid around what is normal the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Legend Power Systems (free visualization of insider trades).
Important note: Legend Power Systems 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.
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