Jose Aguilar has been the CEO of Calfrac Well Services Ltd (TSE:CFW) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Jose Aguilar’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Calfrac Well Services Ltd has a market cap of CA$549m, and is paying total annual CEO compensation of CA$4m. We note that’s an increase of 229% above last year. We examined companies with market caps from CA$261m to CA$1.0b, and discovered that the median CEO compensation of that group was CA$1m.
It would therefore appear that Calfrac Well Services Ltd pays Jose Aguilar 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 a visual representation of the CEO compensation at Calfrac Well Services, below.
Is Calfrac Well Services Ltd Growing?
On average over the last three years, Calfrac Well Services Ltd has grown earnings per share (EPS) by 41% each year. In the last year, its revenue is up 114%.
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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Calfrac Well Services Ltd Been A Good Investment?
Calfrac Well Services Ltd has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Calfrac Well Services Ltd, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling Calfrac Well Services Ltd shares (free trial).
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.