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Does Questerre Energy Corporation's (TSE:QEC) CEO Salary Compare Well With Others?

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Michael Binnion has been the CEO of Questerre Energy Corporation (TSE:QEC) since 2000. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Questerre Energy

How Does Michael Binnion's Compensation Compare With Similar Sized Companies?

Our data indicates that Questerre Energy Corporation is worth CA$187m, and total annual CEO compensation is CA$1.3m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CA$286k. We looked at a group of companies with market capitalizations under CA$267m, and the median CEO total compensation was CA$141k.

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It would therefore appear that Questerre Energy Corporation pays Michael Binnion 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 a visual representation of the CEO compensation at Questerre Energy, below.

TSX:QEC CEO Compensation, April 2nd 2019
TSX:QEC CEO Compensation, April 2nd 2019

Is Questerre Energy Corporation Growing?

Questerre Energy Corporation has increased its earnings per share (EPS) by an average of 90% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 53%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Questerre Energy Corporation Been A Good Investment?

I think that the total shareholder return of 182%, over three years, would leave most Questerre Energy Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We examined the amount Questerre Energy Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Questerre Energy shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.