Yahoo Finance Should You Worry About BNK Petroleum Inc.'s (TSE:BKX) CEO Salary Level?
In 2008 Wolf Regener was appointed CEO of BNK Petroleum Inc. (TSE:BKX). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for BNK Petroleum
How Does Wolf Regener's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that BNK Petroleum Inc. has a market cap of CA$21m, and reported total annual CEO compensation of US$459k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$376k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$136k.
It would therefore appear that BNK Petroleum Inc. pays Wolf Regener 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 better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at BNK Petroleum has changed from year to year.
Is BNK Petroleum Inc. Growing?
BNK Petroleum Inc. has increased its earnings per share (EPS) by an average of 112% a year, over the last three years (using a line of best fit). Its revenue is down 22% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has BNK Petroleum Inc. Been A Good Investment?
Since shareholders would have lost about 64% over three years, some BNK Petroleum Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount BNK Petroleum Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying BNK Petroleum shares with their own money (free access).
If you want to buy a stock that is better than BNK Petroleum, this free list of high return, low debt companies is a great place to look.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
