Yahoo Finance Is Tourmaline Oil Corp.’s (TSE:TOU) CEO Pay Fair?
Mike Rose became the CEO of Tourmaline Oil Corp. (TSE:TOU) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Tourmaline Oil
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does Mike Rose’s Compensation Compare With Similar Sized Companies?
According to our data, Tourmaline Oil Corp. has a market capitalization of CA$5.2b, and pays its CEO total annual compensation worth CA$3.0m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at CA$450k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$2.7b to CA$8.5b. The median total CEO compensation was CA$3.9m.
That means Mike Rose receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Tourmaline Oil has changed from year to year.
Is Tourmaline Oil Corp. Growing?
Tourmaline Oil Corp. has increased its earnings per share (EPS) by an average of 43% a year, over the last three years (using a line of best fit). It achieved revenue growth of 9.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Tourmaline Oil Corp. Been A Good Investment?
With a three year total loss of 26%, Tourmaline Oil Corp. 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 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 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. Shareholders may want to check for free if Tourmaline Oil insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
