Yahoo Finance Is Leucrotta Exploration Inc.'s (CVE:LXE) CEO Paid Enough Relative To Peers?
Rob Zakresky has been the CEO of Leucrotta Exploration Inc. (CVE:LXE) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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Check out our latest analysis for Leucrotta Exploration
How Does Rob Zakresky's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Leucrotta Exploration Inc. has a market cap of CA$184m, and is paying total annual CEO compensation of CA$571k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$257k. We examined a group of similar sized companies, with market capitalizations of below CA$268m. The median CEO total compensation in that group is CA$148k.
Thus we can conclude that Rob Zakresky receives more in total compensation than the median of a group of companies in the same market, and of similar size to Leucrotta Exploration Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Leucrotta Exploration, below.
Is Leucrotta Exploration Inc. Growing?
On average over the last three years, Leucrotta Exploration Inc. has grown earnings per share (EPS) by 3.2% each year (using a line of best fit). In the last year, its revenue is up 30%.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.
Has Leucrotta Exploration Inc. Been A Good Investment?
Since shareholders would have lost about 40% over three years, some Leucrotta Exploration Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Leucrotta Exploration Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that 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. So you may want to check if insiders are buying Leucrotta Exploration shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
