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Duncan Au has been the CEO of CWC Energy Services Corp. (CVE:CWC) since 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Duncan Au's Compensation Compare With Similar Sized Companies?
According to our data, CWC Energy Services Corp. has a market capitalization of CA$82m, and pays its CEO total annual compensation worth CA$558k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$350k. We examined a group of similar sized companies, with market capitalizations of below CA$262m. The median CEO total compensation in that group is CA$120k.
It would therefore appear that CWC Energy Services Corp. pays Duncan Au 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 CWC Energy Services has changed from year to year.
Is CWC Energy Services Corp. Growing?
CWC Energy Services Corp. has increased its earnings per share (EPS) by an average of 113% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -1.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has CWC Energy Services Corp. Been A Good Investment?
Given the total loss of 24% over three years, many shareholders in CWC Energy Services Corp. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount CWC Energy Services Corp. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling CWC Energy Services shares (free trial).
If you want to buy a stock that is better than CWC Energy Services, 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.