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Does Oryx Petroleum Corporation Limited's (TSE:OXC) CEO Pay Reflect Performance?

Simply Wall St

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Vance Querio has been the CEO of Oryx Petroleum Corporation Limited (TSE:OXC) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for Oryx Petroleum

How Does Vance Querio's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Oryx Petroleum Corporation Limited has a market cap of CA$144m, and is paying total annual CEO compensation of US$1.5m. (This figure is for the year to December 2018). We note that's an increase of 36% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$528k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$113k.

Thus we can conclude that Vance Querio receives more in total compensation than the median of a group of companies in the same market, and of similar size to Oryx Petroleum Corporation Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Oryx Petroleum, below.

TSX:OXC CEO Compensation, June 14th 2019

Is Oryx Petroleum Corporation Limited Growing?

Oryx Petroleum Corporation Limited has increased its earnings per share (EPS) by an average of 133% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 171%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Oryx Petroleum Corporation Limited Been A Good Investment?

Given the total loss of 66% over three years, many shareholders in Oryx Petroleum Corporation Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Oryx Petroleum Corporation Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. This contrasts with the growth in CEO remuneration, in the last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Oryx Petroleum insiders are buying or selling shares.

Important note: Oryx Petroleum 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.

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 editorial-team@simplywallst.com. 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.