Yahoo Finance What We Learned About Birchcliff Energy's (TSE:BIR) CEO Compensation
Jeff Tonken has been the CEO of Birchcliff Energy Ltd. (TSE:BIR) since 2004, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Birchcliff Energy
Comparing Birchcliff Energy Ltd.'s CEO Compensation With the industry
According to our data, Birchcliff Energy Ltd. has a market capitalization of CA$564m, and paid its CEO total annual compensation worth CA$2.0m over the year to December 2019. We note that's a decrease of 59% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$541k.
For comparison, other companies in the same industry with market capitalizations ranging between CA$260m and CA$1.0b had a median total CEO compensation of CA$1.9m. From this we gather that Jeff Tonken is paid around the median for CEOs in the industry. What's more, Jeff Tonken holds CA$3.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$541k | CA$525k | 27% |
Other | CA$1.5m | CA$4.4m | 73% |
Total Compensation | CA$2.0m | CA$4.9m | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Birchcliff Energy sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Birchcliff Energy Ltd.'s Growth Numbers
Birchcliff Energy Ltd. has reduced its earnings per share by 28% a year over the last three years. It saw its revenue drop 5.4% over the last year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Birchcliff Energy Ltd. Been A Good Investment?
Given the total shareholder loss of 53% over three years, many shareholders in Birchcliff Energy Ltd. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Jeff is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Birchcliff Energy we think you should know about.
Switching gears from Birchcliff Energy, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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