Yahoo Finance Our Take On Enterprise Group, Inc.'s (TSE:E) CEO Salary
Len Jaroszuk has been the CEO of Enterprise Group, Inc. (TSE:E) since 2004. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Enterprise Group
How Does Len Jaroszuk's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Enterprise Group, Inc. has a market cap of CA$9.4m, and is paying total annual CEO compensation of CA$1.2m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$646k. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$138k.
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 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 Enterprise Group, below.
Is Enterprise Group, Inc. Growing?
Enterprise Group, Inc. has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -10%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Enterprise Group, Inc. Been A Good Investment?
Since shareholders would have lost about 41% over three years, some Enterprise Group, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Enterprise Group, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. 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. So you may want to check if insiders are buying Enterprise Group shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
