Yahoo Finance Our View On Cub Energy's (CVE:KUB) CEO Pay
This article will reflect on the compensation paid to Mikhail Afendikov who has served as CEO of Cub Energy Inc. (CVE:KUB) since 2011. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Cub Energy.
Check out our latest analysis for Cub Energy
Comparing Cub Energy Inc.'s CEO Compensation With the industry
Our data indicates that Cub Energy Inc. has a market capitalization of CA$6.3m, and total annual CEO compensation was reported as US$330k for the year to December 2019. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$330k.
In comparison with other companies in the industry with market capitalizations under CA$269m, the reported median total CEO compensation was US$279k. So it looks like Cub Energy compensates Mikhail Afendikov in line with the median for the industry.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$330k | US$330k | 100% |
Other | - | - | - |
Total Compensation | US$330k | US$330k | 100% |
Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. At the company level, Cub Energy pays Mikhail Afendikov solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Cub Energy Inc.'s Growth
Over the last three years, Cub Energy Inc. has shrunk its earnings per share by 19% per year. Its revenue is down 52% over the previous year.
Few shareholders would be pleased to read that earnings have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Cub Energy Inc. Been A Good Investment?
With a three year total loss of 33% for the shareholders, Cub Energy Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Cub Energy rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Mikhail is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining earnings growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Cub Energy (1 can't be ignored!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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