Yahoo Finance Is TORC Oil & Gas Ltd.’s (TSE:TOG) CEO Pay Justified?
The CEO of TORC Oil & Gas Ltd. (TSE:TOG) is Brett Herman. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for TORC Oil & Gas
How Does Brett Herman’s Compensation Compare With Similar Sized Companies?
According to our data, TORC Oil & Gas Ltd. has a market capitalization of CA$941m, and pays its CEO total annual compensation worth CA$2.0m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$325k. When we examined a selection of companies with market caps ranging from CA$537m to CA$2.1b, we found the median CEO compensation was CA$1.9m.
So Brett Herman is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at TORC Oil & Gas, below.
Is TORC Oil & Gas Ltd. Growing?
Over the last three years TORC Oil & Gas Ltd. has grown its earnings per share (EPS) by an average of 122% per year (using a line of best fit). In the last year, its revenue is up 37%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has TORC Oil & Gas Ltd. Been A Good Investment?
Given the total loss of 34% over three years, many shareholders in TORC Oil & Gas Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Brett Herman is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling TORC Oil & Gas (free visualization of insider trades).
Important note: TORC Oil & Gas 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.
