Yahoo Finance Is Legend Power Systems Inc.'s (CVE:LPS) CEO Overpaid Relative To Its Peers?
Randy Buchamer is the CEO of Legend Power Systems Inc. (CVE:LPS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Legend Power Systems
How Does Randy Buchamer's Compensation Compare With Similar Sized Companies?
Our data indicates that Legend Power Systems Inc. is worth CA$29m, and total annual CEO compensation is CA$241k. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at CA$225k. We looked at a group of companies with market capitalizations under CA$262m, and the median CEO total compensation was CA$120k.
As you can see, Randy Buchamer is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Legend Power Systems Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Legend Power Systems has changed from year to year.
Is Legend Power Systems Inc. Growing?
Legend Power Systems Inc. has increased its earnings per share (EPS) by an average of 6.8% a year, over the last three years (using a line of best fit). It saw its revenue drop -21% over the last year.
I generally like to see a little revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Legend Power Systems Inc. Been A Good Investment?
With a three year total loss of 1.7%, Legend Power Systems Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Legend Power Systems 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Legend Power Systems.
If you want to buy a stock that is better than Legend Power Systems, this free list of high return, low debt companies is a great place to look.
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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.
