Yahoo Finance Is Eagle Plains Resources Ltd.'s (CVE:EPL) CEO Being Overpaid?
Tim Termuende has been the CEO of Eagle Plains Resources Ltd. (CVE:EPL) since 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Eagle Plains Resources
How Does Tim Termuende's Compensation Compare With Similar Sized Companies?
Our data indicates that Eagle Plains Resources Ltd. is worth CA$8.4m, and total annual CEO compensation was reported as CA$127k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of similar sized companies, with market capitalizations of below CA$264m. The median CEO total compensation in that group is CA$180k.
So Tim Termuende is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Eagle Plains Resources has changed over time.
Is Eagle Plains Resources Ltd. Growing?
Over the last three years Eagle Plains Resources Ltd. has grown its earnings per share (EPS) by an average of 72% per year (using a line of best fit). It achieved revenue growth of 87% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Eagle Plains Resources Ltd. Been A Good Investment?
With a three year total loss of 40%, Eagle Plains Resources Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Tim Termuende is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Eagle Plains Resources (free visualization of insider trades).
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.
