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How Should Investors React To Secure Energy Services Inc.'s (TSE:SES) CEO Pay?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

In 2007 Rene Amirault was appointed CEO of Secure Energy Services Inc. (TSE:SES). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Secure Energy Services

How Does Rene Amirault's Compensation Compare With Similar Sized Companies?

According to our data, Secure Energy Services Inc. has a market capitalization of CA$1.1b, and pays its CEO total annual compensation worth CA$2.6m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$520k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$522m to CA$2.1b. The median total CEO compensation was CA$2.0m.

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So Rene Amirault receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Secure Energy Services has changed over time.

TSX:SES CEO Compensation, July 5th 2019
TSX:SES CEO Compensation, July 5th 2019

Is Secure Energy Services Inc. Growing?

On average over the last three years, Secure Energy Services Inc. has grown earnings per share (EPS) by 103% each year (using a line of best fit). Its revenue is up 17% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Secure Energy Services Inc. Been A Good Investment?

With a three year total loss of 11%, Secure Energy Services Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Rene Amirault is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Shareholders may want to check for free if Secure Energy Services insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.