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How Does Altura Energy's (CVE:ATU) CEO Salary Compare to Peers?

Simply Wall St
·3 min read

This article will reflect on the compensation paid to David Burghardt who has served as CEO of Altura Energy Inc. (CVE:ATU) since 2015. This analysis will also assess whether Altura Energy pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Altura Energy

How Does Total Compensation For David Burghardt Compare With Other Companies In The Industry?

According to our data, Altura Energy Inc. has a market capitalization of CA$13m, and paid its CEO total annual compensation worth CA$238k over the year to December 2019. Notably, that's a decrease of 13% over the year before. In particular, the salary of CA$197.3k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below CA$266m, we found that the median total CEO compensation was CA$358k. That is to say, David Burghardt is paid under the industry median. Moreover, David Burghardt also holds CA$365k worth of Altura Energy stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

CA$197k

CA$183k

83%

Other

CA$41k

CA$91k

17%

Total Compensation

CA$238k

CA$273k

100%

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Altura Energy is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ceo-compensation

A Look at Altura Energy Inc.'s Growth Numbers

Altura Energy Inc. has reduced its earnings per share by 121% a year over the last three years. Its revenue is down 29% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, 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?

Given the total shareholder loss of 71% over three years, many shareholders in Altura Energy Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, David is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that David is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which are concerning) in Altura Energy we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.