Yahoo Finance Is Keyera Corp. (TSE:KEY) Excessively Paying Its CEO?
In 2015 David Smith was appointed CEO of Keyera Corp. (TSE:KEY). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does David Smith’s Compensation Compare With Similar Sized Companies?
Our data indicates that Keyera Corp. is worth CA$5.7b, and total annual CEO compensation is CA$3.5m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at CA$562k. We examined companies with market caps from CA$2.7b to CA$8.6b, and discovered that the median CEO compensation of that group was CA$4.0m.
So David Smith 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 Keyera has changed over time.
Is Keyera Corp. Growing?
Over the last three years Keyera Corp. has grown its earnings per share (EPS) by an average of 8.5% per year (using a line of best fit). Its revenue is up 41% over last year.
It’s great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!
You might want to check this free visual report on analyst forecasts for future earnings.
Has Keyera Corp. Been A Good Investment?
Given the total loss of 8.0% over three years, many shareholders in Keyera Corp. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Remuneration for David Smith is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And it’s hard to argue that the returns over the last three years have delighted. So suffice it to say we don’t think the compensation is modest! So you may want to check if insiders are buying Keyera shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.
