Yahoo Finance Should You Be Pleased About The CEO Pay At Surge Energy Inc.’s (TSE:SGY)
Paul Colborne became the CEO of Surge Energy Inc. (TSE:SGY) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Surge Energy
How Does Paul Colborne’s Compensation Compare With Similar Sized Companies?
According to our data, Surge Energy Inc. has a market capitalization of CA$427m, and pays its CEO total annual compensation worth CA$2.2m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$156k. We looked at a group of companies with market capitalizations from CA$266m to CA$1.1b, and the median CEO total compensation was CA$1.2m.
Thus we can conclude that Paul Colborne receives more in total compensation than the median of a group of companies in the same market, and of similar size to Surge Energy 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 Surge Energy has changed from year to year.
Is Surge Energy Inc. Growing?
Surge Energy Inc. has increased its earnings per share (EPS) by an average of 87% a year, over the last three years (using a line of best fit). Its revenue is up 22% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Surge Energy Inc. Been A Good Investment?
Given the total loss of 34% over three years, many shareholders in Surge Energy Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared total CEO remuneration at Surge Energy Inc. with the amount paid at companies with a similar market capitalization. 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. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Shareholders may want to check for free if Surge Energy insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
