Chris Buncic became the CEO of Ascendant Resources Inc. (TSE:ASND) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Chris Buncic’s Compensation Compare With Similar Sized Companies?
Our data indicates that Ascendant Resources Inc. is worth CA$34m, and total annual CEO compensation is US$1.4m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$279k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$118k.
It would therefore appear that Ascendant Resources Inc. pays Chris Buncic 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.
You can see, below, how CEO compensation at Ascendant Resources has changed over time.
Is Ascendant Resources Inc. Growing?
Ascendant Resources Inc. has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). It achieved revenue growth of 60% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Ascendant Resources Inc. Been A Good Investment?
Boasting a total shareholder return of 256% over three years, Ascendant Resources Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Ascendant Resources Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Ascendant Resources shares with their own money (free access).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.