In 2009 Dale Dusterhoft was appointed CEO of Trican Well Service Ltd. (TSE:TCW). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Dale Dusterhoft's Compensation Compare With Similar Sized Companies?
Our data indicates that Trican Well Service Ltd. is worth CA$355m, and total annual CEO compensation is CA$1.8m. (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$441k. When we examined a selection of companies with market caps ranging from CA$133m to CA$530m, we found the median CEO total compensation was CA$853k.
Thus we can conclude that Dale Dusterhoft receives more in total compensation than the median of a group of companies in the same market, and of similar size to Trican Well Service Ltd.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Trican Well Service has changed from year to year.
Is Trican Well Service Ltd. Growing?
Trican Well Service Ltd. has reduced its earnings per share by an average of 14% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -31%.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Trican Well Service Ltd. Been A Good Investment?
Given the total loss of 46% over three years, many shareholders in Trican Well Service Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Trican Well Service Ltd. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Trican Well Service insiders are buying or selling shares.
Important note: Trican Well Service 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.
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