Yahoo Finance Should You Worry About Tourmaline Oil Corp.'s (TSE:TOU) CEO Pay?
In 2008 Mike Rose was appointed CEO of Tourmaline Oil Corp. (TSE:TOU). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Tourmaline Oil
How Does Mike Rose's Compensation Compare With Similar Sized Companies?
According to our data, Tourmaline Oil Corp. has a market capitalization of CA$4.2b, and paid its CEO total annual compensation worth CA$3.2m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$600k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from CA$2.6b to CA$8.3b, and discovered that the median CEO total compensation of that group was CA$3.8m.
So Mike Rose receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Tourmaline Oil has changed over time.
Is Tourmaline Oil Corp. Growing?
Tourmaline Oil Corp. has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). Its revenue is down 3.8% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Tourmaline Oil Corp. Been A Good Investment?
Since shareholders would have lost about 50% over three years, some Tourmaline Oil Corp. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Mike Rose is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shareholders may want to check for free if Tourmaline Oil insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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