Yahoo Finance Why Gear Energy Ltd’s (TSE:GXE) CEO Pay Matters To You
Ingram Gillmore became the CEO of Gear Energy Ltd (TSE:GXE) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Gear Energy
How Does Ingram Gillmore’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Gear Energy Ltd has a market cap of CA$184m, and is paying total annual CEO compensation of CA$386k. That’s below the compensation, last year. We took a group of companies with market capitalizations below CA$263m, and calculated the median CEO compensation to be CA$156k.
It would therefore appear that Gear Energy Ltd pays Ingram Gillmore more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Gear Energy has changed from year to year.
Is Gear Energy Ltd Growing?
On average over the last three years, Gear Energy Ltd has grown earnings per share (EPS) by 94% each year. In the last year, its revenue is up 27%.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Gear Energy Ltd Been A Good Investment?
With a three year total loss of 5.6%, Gear Energy Ltd would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at Gear Energy Ltd with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Gear Energy Ltd shares (free trial).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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.