Yahoo Finance What We Learned About Wilton Resources' (CVE:WIL) CEO Pay
Richard Anderson has been the CEO of Wilton Resources Inc. (CVE:WIL) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Wilton Resources pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Wilton Resources
How Does Total Compensation For Richard Anderson Compare With Other Companies In The Industry?
Our data indicates that Wilton Resources Inc. has a market capitalization of CA$21m, and total annual CEO compensation was reported as CA$275k for the year to December 2019. We note that's an increase of 10% above last year. We note that the salary portion, which stands at CA$250.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under CA$255m, the reported median total CEO compensation was CA$265k. From this we gather that Richard Anderson is paid around the median for CEOs in the industry. What's more, Richard Anderson holds CA$433k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$250k | CA$250k | 91% |
Other | CA$25k | - | 9% |
Total Compensation | CA$275k | CA$250k | 100% |
On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that Wilton Resources pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Wilton Resources Inc.'s Growth Numbers
Wilton Resources Inc. has seen its earnings per share (EPS) increase by 54% a year over the past three years. In the last year, its revenue is up 2,473%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Wilton Resources Inc. Been A Good Investment?
Since shareholders would have lost about 61% over three years, some Wilton Resources Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we touched on above, Wilton Resources Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for Wilton Resources (2 shouldn't be ignored!) that you should be aware of before investing here.
Important note: Wilton Resources 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.
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