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Key Things To Understand About Tornado Global Hydrovacs' (CVE:TGH) CEO Pay Cheque

The CEO of Tornado Global Hydrovacs Ltd. (CVE:TGH) is Bill Rollins, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Tornado Global Hydrovacs pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Tornado Global Hydrovacs

Comparing Tornado Global Hydrovacs Ltd.'s CEO Compensation With the industry

At the time of writing, our data shows that Tornado Global Hydrovacs Ltd. has a market capitalization of CA$16m, and reported total annual CEO compensation of CA$350k for the year to December 2019. We note that's an increase of 20% above last year. In particular, the salary of CA$200.0k, makes up a huge portion of the total compensation being paid to the CEO.

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In comparison with other companies in the industry with market capitalizations under CA$266m, the reported median total CEO compensation was CA$255k. Hence, we can conclude that Bill Rollins is remunerated higher than the industry median.

Component

2019

2018

Proportion (2019)

Salary

CA$200k

CA$196k

57%

Other

CA$150k

CA$95k

43%

Total Compensation

CA$350k

CA$291k

100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. Tornado Global Hydrovacs is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ceo-compensation

A Look at Tornado Global Hydrovacs Ltd.'s Growth Numbers

Tornado Global Hydrovacs Ltd. has seen its earnings per share (EPS) increase by 55% a year over the past three years. In the last year, its revenue is down 7.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tornado Global Hydrovacs Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Tornado Global Hydrovacs Ltd. for providing a total return of 56% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Tornado Global Hydrovacs pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Bill's performance creates value for the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Tornado Global Hydrovacs that investors should think about before committing capital to this stock.

Important note: Tornado Global Hydrovacs is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.