Yahoo Finance How Should Investors Feel About Hemisphere Energy Corporation's (CVE:HME) CEO Pay?
Don Simmons has been the CEO of Hemisphere Energy Corporation (CVE:HME) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Hemisphere Energy
How Does Don Simmons's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Hemisphere Energy Corporation has a market cap of CA$18m, and reported total annual CEO compensation of CA$312k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$204k. We looked at a group of companies with market capitalizations under CA$260m, and the median CEO total compensation was CA$225k.
It would therefore appear that Hemisphere Energy Corporation pays Don Simmons 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Hemisphere Energy, below.
Is Hemisphere Energy Corporation Growing?
Hemisphere Energy Corporation has increased its earnings per share (EPS) by an average of 26% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 43%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hemisphere Energy Corporation Been A Good Investment?
Hemisphere Energy Corporation has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared the total CEO remuneration paid by Hemisphere Energy Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hemisphere Energy (free visualization of insider trades).
Important note: Hemisphere Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
