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How Much is Cequence Energy Ltd.'s (TSE:CQE) CEO Getting Paid?

In 2017 Todd Brown was appointed CEO of Cequence Energy Ltd. (TSE:CQE). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

See our latest analysis for Cequence Energy

How Does Todd Brown's Compensation Compare With Similar Sized Companies?

Our data indicates that Cequence Energy Ltd. is worth CA$14m, and total annual CEO compensation was reported as CA$591k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$325k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$160k.

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It would therefore appear that Cequence Energy Ltd. pays Todd Brown more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 Cequence Energy has changed from year to year.

TSX:CQE CEO Compensation, September 27th 2019
TSX:CQE CEO Compensation, September 27th 2019

Is Cequence Energy Ltd. Growing?

On average over the last three years, Cequence Energy Ltd. has grown earnings per share (EPS) by 86% each year (using a line of best fit). It achieved revenue growth of 8.7% over the last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Cequence Energy Ltd. Been A Good Investment?

Since shareholders would have lost about 94% over three years, some Cequence Energy Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Cequence Energy Ltd. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Cequence Energy 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.