Yahoo Finance Should You Be Pleased About The CEO Pay At Clearford Water Systems Inc.’s (CVE:CLI)
Want to help shape the future of investing tools? Participate in a short research study and receive a subscription valued at $60.
In 2013 Kevin Loiselle was appointed CEO of Clearford Water Systems Inc. (CVE:CLI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Clearford Water Systems
How Does Kevin Loiselle’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Clearford Water Systems Inc. has a market cap of CA$3.6m, and is paying total annual CEO compensation of CA$350k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$240k. We examined a group of similar sized companies, with market capitalizations of below CA$263m. The median CEO compensation in that group is CA$156k.
Thus we can conclude that Kevin Loiselle receives more in total compensation than the median of a group of companies in the same market, and of similar size to Clearford Water Systems Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Clearford Water Systems has changed from year to year.
Is Clearford Water Systems Inc. Growing?
Over the last three years, Clearford Water Systems Inc. has not seen its earnings per share change much, though they have deteriorated slightly. Its revenue is up 75% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Clearford Water Systems Inc. Been A Good Investment?
Since shareholders would have lost about 81% over three years, some Clearford Water Systems Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Clearford Water Systems Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we’d stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Clearford Water Systems.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
