Yahoo Finance Should You Be Pleased About The CEO Pay At Hemisphere Energy Corporation's (CVE:HME)
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Don Simmons became the CEO of Hemisphere Energy Corporation (CVE:HME) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Hemisphere Energy
How Does Don Simmons's Compensation Compare With Similar Sized Companies?
According to our data, Hemisphere Energy Corporation has a market capitalization of CA$12m, and pays its CEO total annual compensation worth CA$312k. (This is based on the year to December 2018). That's a notable increase of 59% on last year. While we always look at total compensation first, we note that the salary component is less, at CA$204k. We took a group of companies with market capitalizations below CA$268m, and calculated the median CEO total compensation to be CA$150k.
As you can see, Don Simmons is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Hemisphere Energy Corporation is paying too much. 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 Hemisphere Energy has changed from year to year.
Is Hemisphere Energy Corporation Growing?
Hemisphere Energy Corporation has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 75%.
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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Hemisphere Energy Corporation Been A Good Investment?
Since shareholders would have lost about 35% over three years, some Hemisphere Energy Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Hemisphere Energy Corporation with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. This contrasts with the growth in CEO remuneration, in the last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hemisphere Energy (free visualization of insider trades).
If you want to buy a stock that is better than Hemisphere Energy, this free list of high return, low debt companies is a great place to look.
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.
