Rob Zakresky has been the CEO of Leucrotta Exploration Inc. (CVE:LXE) since 2014. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rob Zakresky's Compensation Compare With Similar Sized Companies?
According to our data, Leucrotta Exploration Inc. has a market capitalization of CA$124m, and paid its CEO total annual compensation worth CA$377k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$275k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$225k.
Thus we can conclude that Rob Zakresky receives more in total compensation than the median of a group of companies in the same market, and of similar size to Leucrotta Exploration Inc.. However, this doesn't necessarily mean the pay 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 Leucrotta Exploration has changed over time.
Is Leucrotta Exploration Inc. Growing?
On average over the last three years, Leucrotta Exploration Inc. has grown earnings per share (EPS) by 101% each year (using a line of best fit). Its revenue is down 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Leucrotta Exploration Inc. Been A Good Investment?
Since shareholders would have lost about 72% over three years, some Leucrotta Exploration Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Leucrotta Exploration Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Leucrotta Exploration shares (free trial).
Important note: Leucrotta Exploration may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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