Yahoo Finance Is Enterprise Group Inc (TSE:E) Overpaying Its CEO?
Len Jaroszuk became the CEO of Enterprise Group Inc (TSE:E) in 2004. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Enterprise Group
How Does Len Jaroszuk’s Compensation Compare With Similar Sized Companies?
Our data indicates that Enterprise Group Inc is worth CA$14m, and total annual CEO compensation is CA$573k. That’s less than last year. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO compensation to be CA$154k.
As you can see, Len Jaroszuk is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Enterprise Group Inc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Enterprise Group has changed from year to year.
Is Enterprise Group Inc Growing?
On average over the last three years, Enterprise Group Inc has grown earnings per share (EPS) by 56% each year. In the last year, its revenue is up 41%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Enterprise Group Inc Been A Good Investment?
Given the total loss of 11% over three years, many shareholders in Enterprise Group Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We examined the amount Enterprise Group Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
