Yahoo Finance What Can We Make Of Midland Exploration's (CVE:MD) CEO Compensation?
Gino Roger became the CEO of Midland Exploration Inc. (CVE:MD) in 2006, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Midland Exploration.
See our latest analysis for Midland Exploration
How Does Total Compensation For Gino Roger Compare With Other Companies In The Industry?
At the time of writing, our data shows that Midland Exploration Inc. has a market capitalization of CA$53m, and reported total annual CEO compensation of CA$329k for the year to September 2020. That's a modest increase of 3.7% on the prior year. Notably, the salary which is CA$259.4k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below CA$255m, reported a median total CEO compensation of CA$150k. Hence, we can conclude that Gino Roger is remunerated higher than the industry median. What's more, Gino Roger holds CA$791k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$259k | CA$248k | 79% |
Other | CA$70k | CA$70k | 21% |
Total Compensation | CA$329k | CA$317k | 100% |
Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 6.5% is other remuneration. It's interesting to note that Midland Exploration allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Midland Exploration Inc.'s Growth
Midland Exploration Inc. has reduced its earnings per share by 1.5% a year over the last three years. It saw its revenue drop 29% over the last year.
A lack of EPS improvement is not good to see. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Midland Exploration Inc. Been A Good Investment?
Midland Exploration Inc. has not done too badly by shareholders, with a total return of 1.2%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
As previously discussed, Gino is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Meanwhile, EPS has not been growing sufficiently to impress us, over the last three years. And shareholder returns are decent but not great. So you may want to delve deeper, because we don't think the amount Gino makes is justifiable.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Midland Exploration (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.
Important note: Midland Exploration 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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