Yahoo Finance How Much Does Saturn Oil & Gas' (CVE:SOIL) CEO Make?
John Jeffrey became the CEO of Saturn Oil & Gas Inc. (CVE:SOIL) in 2016, 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 assess whether Saturn Oil & Gas pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Saturn Oil & Gas
How Does Total Compensation For John Jeffrey Compare With Other Companies In The Industry?
According to our data, Saturn Oil & Gas Inc. has a market capitalization of CA$27m, and paid its CEO total annual compensation worth CA$307k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at CA$250.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below CA$260m, reported a median total CEO compensation of CA$299k. From this we gather that John Jeffrey is paid around the median for CEOs in the industry. Furthermore, John Jeffrey directly owns CA$323k worth of shares in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$250k | CA$200k | 81% |
Other | CA$57k | CA$100k | 19% |
Total Compensation | CA$307k | CA$300k | 100% |
On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that Saturn Oil & Gas pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Saturn Oil & Gas Inc.'s Growth
Over the past three years, Saturn Oil & Gas Inc. has seen its earnings per share (EPS) grow by 79% per year. Its revenue is down 3.5% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Saturn Oil & Gas Inc. Been A Good Investment?
Since shareholders would have lost about 8.0% over three years, some Saturn Oil & Gas Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, Saturn Oil & Gas pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which shouldn't be ignored) in Saturn Oil & Gas we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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