Yahoo Finance Here's What We Learned About The CEO Pay At Jura Energy Corporation (CVE:JEC)
This article will reflect on the compensation paid to Nadeem Farooq who has served as CEO of Jura Energy Corporation (CVE:JEC) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Jura Energy
Comparing Jura Energy Corporation's CEO Compensation With the industry
Our data indicates that Jura Energy Corporation has a market capitalization of CA$4.8m, and total annual CEO compensation was reported as CA$216k for the year to December 2019. Notably, that's an increase of 21% over the year before. Notably, the salary which is US$153.4k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below CA$260m, we found that the median total CEO compensation was CA$299k. So it looks like Jura Energy compensates Nadeem Farooq in line with the median for the industry.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$153k | CA$142k | 71% |
Other | CA$62k | CA$36k | 29% |
Total Compensation | CA$216k | CA$179k | 100% |
On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that Jura Energy pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Jura Energy Corporation's Growth
Jura Energy Corporation has reduced its earnings per share by 33% a year over the last three years. In the last year, its revenue is up 43%.
The reduction in EPS, over three years, is arguably concerning. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Jura Energy Corporation Been A Good Investment?
Given the total shareholder loss of 39% over three years, many shareholders in Jura Energy Corporation are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we touched on above, Jura Energy Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Still, the company is logging healthy revenue growth over the last year. On the other hand, shareholder returns for Nadeem are negative over the same period. EPS growth is also negative, adding insult to injury. We'd say CEO compensation isn't unfair, but shareholders may be wary of a bump in pay before the company substantially improves overall performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Jura Energy that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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