Yahoo Finance Here's What We Think About Perisson Petroleum Corporation's (CVE:POG) CEO Pay
In 2012 Gary Chen was appointed CEO of Perisson Petroleum Corporation (CVE:POG). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Perisson Petroleum
How Does Gary Chen's Compensation Compare With Similar Sized Companies?
Our data indicates that Perisson Petroleum Corporation is worth CA$120m, and total annual CEO compensation was reported as CA$301k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$200k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$205k.
It would therefore appear that Perisson Petroleum Corporation pays Gary Chen more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 Perisson Petroleum, below.
Is Perisson Petroleum Corporation Growing?
On average over the last three years, Perisson Petroleum Corporation has shrunk earnings per share by 3.9% each year (measured with a line of best fit). Its revenue is down 12% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Perisson Petroleum Corporation Been A Good Investment?
Most shareholders would probably be pleased with Perisson Petroleum Corporation for providing a total return of 175% over three years. 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...
We compared the total CEO remuneration paid by Perisson Petroleum Corporation, 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. But clearly there are some positives, because investors have done well over the same time frame. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Perisson Petroleum.
If you want to buy a stock that is better than Perisson Petroleum, this free list of high return, low debt companies is a great place to look.
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.
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