Yahoo Finance Is Oryx Petroleum Corporation Limited's (TSE:OXC) CEO Being Overpaid?
In 2016 Vance Querio was appointed CEO of Oryx Petroleum Corporation Limited (TSE:OXC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Oryx Petroleum
How Does Vance Querio's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Oryx Petroleum Corporation Limited has a market cap of CA$133m, and reported total annual CEO compensation of US$1.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$528k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$136k.
It would therefore appear that Oryx Petroleum Corporation Limited pays Vance Querio 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Oryx Petroleum has changed over time.
Is Oryx Petroleum Corporation Limited Growing?
Oryx Petroleum Corporation Limited has increased its earnings per share (EPS) by an average of 113% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 98%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Oryx Petroleum Corporation Limited Been A Good Investment?
Given the total loss of 55% over three years, many shareholders in Oryx Petroleum Corporation Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Oryx Petroleum Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Oryx Petroleum.
If you want to buy a stock that is better than Oryx Petroleum, this free list of high return, low debt companies is a great place to look.
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.
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