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Jeff Klenda has been the CEO of Ur-Energy Inc. (TSE:URE) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Ur-Energy.
How Does Total Compensation For Jeff Klenda Compare With Other Companies In The Industry?
According to our data, Ur-Energy Inc. has a market capitalization of CA$108m, and paid its CEO total annual compensation worth US$598k over the year to December 2019. We note that's a small decrease of 6.7% on last year. In particular, the salary of US$426.1k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under CA$266m, the reported median total CEO compensation was US$265k. This suggests that Jeff Klenda is paid more than the median for the industry. Moreover, Jeff Klenda also holds CA$1.9m worth of Ur-Energy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. Ur-Energy pays out 71% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Ur-Energy Inc.'s Growth Numbers
Over the last three years, Ur-Energy Inc. has shrunk its earnings per share by 99% per year. In the last year, its revenue is up 48%.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Ur-Energy Inc. Been A Good Investment?
With a three year total loss of 3.0% for the shareholders, Ur-Energy Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As previously discussed, Jeff is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. At the same time, looking at EPS and total shareholder returns, it's tough to say Ur-Energy is in a sound position, considering both metrics are down. In contrast, revenue growth for the company has been showing a positive trend. Few would argue that it's wise for the company to pay any more, before returns improve.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Ur-Energy (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Ur-Energy, 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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