Yahoo Finance Is Journey Energy Inc.'s (TSE:JOY) CEO Paid At A Competitive Rate?
In 2012 Alex Verge was appointed CEO of Journey Energy Inc. (TSE:JOY). 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Journey Energy
How Does Alex Verge's Compensation Compare With Similar Sized Companies?
According to our data, Journey Energy Inc. has a market capitalization of CA$94m, and pays its CEO total annual compensation worth CA$575k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$240k. We looked at a group of companies with market capitalizations under CA$263m, and the median CEO total compensation was CA$120k.
Thus we can conclude that Alex Verge receives more in total compensation than the median of a group of companies in the same market, and of similar size to Journey Energy Inc.. 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.
The graphic below shows how CEO compensation at Journey Energy has changed from year to year.
Is Journey Energy Inc. Growing?
Over the last three years Journey Energy Inc. has shrunk its earnings per share by an average of 27% per year (measured with a line of best fit). It achieved revenue growth of 2.4% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Journey Energy Inc. Been A Good Investment?
Boasting a total shareholder return of 42% over three years, Journey Energy Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount Journey Energy Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
On the other hand, returns have been good, so the company is doing something right. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. So you may want to check if insiders are buying Journey Energy shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
