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Our Take On Seven Generations Energy Ltd.'s (TSE:VII) CEO Salary

Marty Proctor became the CEO of Seven Generations Energy Ltd. (TSE:VII) in 2017. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Seven Generations Energy

How Does Marty Proctor's Compensation Compare With Similar Sized Companies?

Our data indicates that Seven Generations Energy Ltd. is worth CA$2.1b, and total annual CEO compensation was reported as CA$3.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$450k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from CA$1.3b to CA$4.2b, and the median CEO total compensation was CA$2.9m.

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So Marty Proctor is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Seven Generations Energy, below.

TSX:VII CEO Compensation, February 5th 2020
TSX:VII CEO Compensation, February 5th 2020

Is Seven Generations Energy Ltd. Growing?

Seven Generations Energy Ltd. has increased its earnings per share (EPS) by an average of 55% a year, over the last three years (using a line of best fit). It saw its revenue drop 9.9% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.

Has Seven Generations Energy Ltd. Been A Good Investment?

With a three year total loss of 74%, Seven Generations Energy Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Marty Proctor is close enough to the median pay for a CEO of a similar sized company .

We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Seven Generations Energy (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.