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How Much is Fancamp Exploration Ltd.'s (CVE:FNC) CEO Getting Paid?

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In 2014 Peter Smith was appointed CEO of Fancamp Exploration Ltd. (CVE:FNC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Fancamp Exploration

How Does Peter Smith's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Fancamp Exploration Ltd. has a market cap of CA$14m, and is paying total annual CEO compensation of CA$321k. (This figure is for the year to April 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$125k. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$150k.

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As you can see, Peter Smith is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Fancamp Exploration Ltd. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Fancamp Exploration, below.

TSXV:FNC CEO Compensation, June 10th 2019
TSXV:FNC CEO Compensation, June 10th 2019

Is Fancamp Exploration Ltd. Growing?

Fancamp Exploration Ltd. has increased its earnings per share (EPS) by an average of 103% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -200%.

This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Fancamp Exploration Ltd. Been A Good Investment?

I think that the total shareholder return of 100%, over three years, would leave most Fancamp Exploration Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We examined the amount Fancamp Exploration Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Fancamp Exploration (free visualization of insider trades).

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.