Yahoo Finance Here's What We Think About Leucrotta Exploration's (CVE:LXE) CEO Pay
Rob Zakresky has been the CEO of Leucrotta Exploration Inc. (CVE:LXE) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Leucrotta Exploration pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Leucrotta Exploration
How Does Total Compensation For Rob Zakresky Compare With Other Companies In The Industry?
At the time of writing, our data shows that Leucrotta Exploration Inc. has a market capitalization of CA$144m, and reported total annual CEO compensation of CA$309k for the year to December 2019. Notably, that's a decrease of 18% over the year before. Notably, the salary which is CA$275.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under CA$257m, the reported median total CEO compensation was CA$262k. So it looks like Leucrotta Exploration compensates Rob Zakresky in line with the median for the industry. Furthermore, Rob Zakresky directly owns CA$3.8m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$275k | CA$275k | 89% |
Other | CA$34k | CA$102k | 11% |
Total Compensation | CA$309k | CA$377k | 100% |
Talking in terms of the industry, salary represented approximately 47% of total compensation out of all the companies we analyzed, while other remuneration made up 53% of the pie. Leucrotta Exploration is paying a higher share of its remuneration through a salary in comparison to the overall 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.
Leucrotta Exploration Inc.'s Growth
Over the last three years, Leucrotta Exploration Inc. has shrunk its earnings per share by 118% per year. It saw its revenue drop 17% over the last year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Leucrotta Exploration Inc. Been A Good Investment?
Given the total shareholder loss of 58% over three years, many shareholders in Leucrotta Exploration Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we touched on above, Leucrotta Exploration Inc. 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. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Leucrotta Exploration that investors should be aware of in a dynamic business environment.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
