Michael Binnion has been the CEO of Questerre Energy Corporation (TSE:QEC) since 2000. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Michael Binnion's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Questerre Energy Corporation has a market cap of CA$88m, and reported total annual CEO compensation of CA$547k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$328k. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO total compensation to be CA$161k.
As you can see, Michael Binnion is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Questerre Energy Corporation is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Questerre Energy has changed over time.
Is Questerre Energy Corporation Growing?
On average over the last three years, Questerre Energy Corporation has grown earnings per share (EPS) by 100% each year (using a line of best fit). Its revenue is down 11% 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Questerre Energy Corporation Been A Good Investment?
With a three year total loss of 68%, Questerre Energy Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Questerre Energy Corporation 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.
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 Questerre Energy shares (free trial).
If you want to buy a stock that is better than Questerre Energy, this free list of high return, low debt companies is a great place to look.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.