Yahoo Finance Should You Be Pleased About The CEO Pay At Divergent Energy Services Corp.'s (CVE:DVG)
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In 2013 Ken Berg was appointed CEO of Divergent Energy Services Corp. (CVE:DVG). 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Divergent Energy Services
How Does Ken Berg's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Divergent Energy Services Corp. has a market cap of CA$3.0m, and is paying total annual CEO compensation of US$205k. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$180k. We took a group of companies with market capitalizations below CA$269m, and calculated the median CEO total compensation to be CA$144k.
As you can see, Ken Berg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Divergent Energy Services Corp. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Divergent Energy Services, below.
Is Divergent Energy Services Corp. Growing?
Over the last three years Divergent Energy Services Corp. has grown its earnings per share (EPS) by an average of 53% per year (using a line of best fit). It saw its revenue drop -13% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Divergent Energy Services Corp. Been A Good Investment?
With a three year total loss of 91%, Divergent Energy Services Corp. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Divergent Energy Services Corp. 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 the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Divergent Energy Services shares with their own money (free access).
Important note: Divergent Energy Services may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
