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In 2016 John Jeffrey was appointed CEO of Saturn Oil & Gas Inc. (CVE:SOIL). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does John Jeffrey's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Saturn Oil & Gas Inc. has a market cap of CA$28m, and is paying total annual CEO compensation of CA$300k. (This figure is for the year to December 2018). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at CA$200k. We took a group of companies with market capitalizations below CA$263m, and calculated the median CEO total compensation to be CA$152k.
Thus we can conclude that John Jeffrey receives more in total compensation than the median of a group of companies in the same market, and of similar size to Saturn Oil & Gas Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Saturn Oil & Gas has changed from year to year.
Is Saturn Oil & Gas Inc. Growing?
Over the last three years Saturn Oil & Gas Inc. has grown its earnings per share (EPS) by an average of 45% per year (using a line of best fit). In the last year, its revenue is up 580%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Saturn Oil & Gas Inc. Been A Good Investment?
With a total shareholder return of 26% over three years, Saturn Oil & Gas Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Saturn Oil & Gas Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. So you may want to check if insiders are buying Saturn Oil & Gas shares with their own money (free access).
If you want to buy a stock that is better than Saturn Oil & Gas, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.