Yahoo Finance How Should Investors React To Athabasca Oil Corporation's (TSE:ATH) CEO Pay?
Rob Broen became the CEO of Athabasca Oil Corporation (TSE:ATH) in 2015. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Athabasca Oil
How Does Rob Broen's Compensation Compare With Similar Sized Companies?
Our data indicates that Athabasca Oil Corporation is worth CA$228m, and total annual CEO compensation was reported as CA$2.8m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$515k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CA$133m to CA$532m, we found the median CEO total compensation was CA$891k.
Thus we can conclude that Rob Broen receives more in total compensation than the median of a group of companies in the same market, and of similar size to Athabasca Oil Corporation. However, this doesn't necessarily mean the pay 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 Athabasca Oil, below.
Is Athabasca Oil Corporation Growing?
Athabasca Oil Corporation has increased its earnings per share (EPS) by an average of 57% a year, over the last three years (using a line of best fit). It saw its revenue drop 21% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Athabasca Oil Corporation Been A Good Investment?
With a three year total loss of 76%, Athabasca Oil Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Athabasca Oil Corporation, 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 we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Athabasca Oil.
If you want to buy a stock that is better than Athabasca Oil, 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.
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.
