Yahoo Finance How Much is Whitecap Resources Inc.'s (TSE:WCP) CEO Getting Paid?
Grant Fagerheim has been the CEO of Whitecap Resources Inc. (TSE:WCP) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Whitecap Resources
How Does Grant Fagerheim's Compensation Compare With Similar Sized Companies?
According to our data, Whitecap Resources Inc. has a market capitalization of CA$2.3b, and pays its CEO total annual compensation worth CA$3.6m. (This is based on the year to December 2018). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$425k. We examined companies with market caps from CA$1.3b to CA$4.3b, and discovered that the median CEO total compensation of that group was CA$3.1m.
So Grant Fagerheim is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Whitecap Resources has changed over time.
Is Whitecap Resources Inc. Growing?
Whitecap Resources Inc. has increased its earnings per share (EPS) by an average of 55% a year, over the last three years (using a line of best fit). It achieved revenue growth of 45% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Whitecap Resources Inc. Been A Good Investment?
With a three year total loss of 33%, Whitecap Resources Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Grant Fagerheim is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Whitecap Resources.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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.
