Yahoo Finance Is Tourmaline Oil Corp.'s (TSE:TOU) CEO Paid At A Competitive Rate?
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Mike Rose has been the CEO of Tourmaline Oil Corp. (TSE:TOU) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Tourmaline Oil
How Does Mike Rose's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tourmaline Oil Corp. has a market cap of CA$4.5b, and is paying total annual CEO compensation of CA$3.2m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$600k. We examined companies with market caps from CA$2.6b to CA$8.4b, and discovered that the median CEO total compensation of that group was CA$4.0m.
So Mike Rose receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Tourmaline Oil has changed from year to year.
Is Tourmaline Oil Corp. Growing?
Over the last three years Tourmaline Oil Corp. has grown its earnings per share (EPS) by an average of 69% per year (using a line of best fit). In the last year, its revenue is up 4.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Tourmaline Oil Corp. Been A Good Investment?
Since shareholders would have lost about 49% over three years, some Tourmaline Oil Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Mike Rose is close enough to the median pay for a CEO of a similar sized company .
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tourmaline Oil.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
