Yahoo Finance Is Marksmen Energy Inc.'s (CVE:MAH) CEO Salary Justified?
Archie Nesbitt has been the CEO of Marksmen Energy Inc. (CVE:MAH) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Marksmen Energy
How Does Archie Nesbitt's Compensation Compare With Similar Sized Companies?
Our data indicates that Marksmen Energy Inc. is worth CA$5.1m, and total annual CEO compensation was reported as CA$247k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations below CA$261m, and calculated the median CEO total compensation to be CA$217k.
So Archie Nesbitt receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Marksmen Energy, below.
Is Marksmen Energy Inc. Growing?
Over the last three years Marksmen Energy Inc. has shrunk its earnings per share by an average of 4.5% per year (measured with a line of best fit). In the last year, its revenue is down 40%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Marksmen Energy Inc. Been A Good Investment?
Given the total loss of 50% over three years, many shareholders in Marksmen Energy Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Archie Nesbitt is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Marksmen Energy.
If you want to buy a stock that is better than Marksmen Energy, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
