Yahoo Finance Should You Worry About Altura Energy Inc’s (CVE:ATU) CEO Salary Level?
In 2015 David Burghardt was appointed CEO of Altura Energy Inc (CVE:ATU). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Altura Energy
How Does David Burghardt’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Altura Energy Inc has a market cap of CA$41m, and is paying total annual CEO compensation of CA$259k. (This is based on the year to 2016). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$150k. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO compensation was CA$156k.
As you can see, David Burghardt is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Altura Energy Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Altura Energy, below.
Is Altura Energy Inc Growing?
On average over the last three years, Altura Energy Inc has grown earnings per share (EPS) by 117% each year. Its revenue is up 8.4% over last year.
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 Altura Energy Inc Been A Good Investment?
With a total shareholder return of 7.1% over three years, Altura Energy Inc has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We examined the amount Altura Energy Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Altura Energy.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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.
