Yahoo Finance Is Falcon Oil & Gas Ltd.'s (CVE:FO) CEO Overpaid Relative To Its Peers?
Philip O'Quigley has been the CEO of Falcon Oil & Gas Ltd. (CVE:FO) since 2012. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Falcon Oil & Gas
How Does Philip O'Quigley's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Falcon Oil & Gas Ltd. has a market cap of CA$216m, and is paying total annual CEO compensation of US$685k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$420k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$679k.
So Philip O'Quigley is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Falcon Oil & Gas has changed over time.
Is Falcon Oil & Gas Ltd. Growing?
Falcon Oil & Gas Ltd. has increased its earnings per share (EPS) by an average of 6.3% a year, over the last three years (using a line of best fit). It achieved revenue growth of 220% over the last year.
I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. It could be important to check this free visual depiction of what analysts expect for the future.
Has Falcon Oil & Gas Ltd. Been A Good Investment?
I think that the total shareholder return of 91%, over three years, would leave most Falcon Oil & Gas Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Philip O'Quigley is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I'd venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Falcon Oil & Gas.
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.
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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.
