Yahoo Finance How Should Investors Feel About Trican Well Service Ltd.’s (TSE:TCW) CEO Pay?
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Dale Dusterhoft has been the CEO of Trican Well Service Ltd. (TSE:TCW) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Trican Well Service
How Does Dale Dusterhoft’s Compensation Compare With Similar Sized Companies?
According to our data, Trican Well Service Ltd. has a market capitalization of CA$401m, and pays its CEO total annual compensation worth CA$2.6m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$433k. We looked at a group of companies with market capitalizations from CA$265m to CA$1.1b, and the median CEO compensation was CA$1.3m.
Thus we can conclude that Dale Dusterhoft receives more in total compensation than the median of a group of companies in the same market, and of similar size to Trican Well Service Ltd.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Trican Well Service, below.
Is Trican Well Service Ltd. Growing?
Trican Well Service Ltd. has increased its earnings per share (EPS) by an average of 72% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 33%.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Trican Well Service Ltd. Been A Good Investment?
With a three year total loss of 5.1%, Trican Well Service Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Trican Well Service Ltd., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Trican Well Service.
If you want to buy a stock that is better than Trican Well Service, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
