Alex R. MacAusland has been the CEO of Western Energy Services Corp (TSE:WRG) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Alex R. MacAusland’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Western Energy Services Corp has a market cap of CA$43m, and is paying total annual CEO compensation of CA$1.1m. That’s a notable increase of 32% on last year. We examined a group of similar sized companies, with market capitalizations of below CA$265m. The median CEO compensation in that group is CA$155k.
It would therefore appear that Western Energy Services Corp pays Alex R. MacAusland 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Western Energy Services has changed from year to year.
Is Western Energy Services Corp Growing?
Western Energy Services Corp has increased its earnings per share (EPS) by an average of 51% a year, over the last three years Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Western Energy Services Corp Been A Good Investment?
Since shareholders would have lost about 86% over three years, some Western Energy Services Corp shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Western Energy Services Corp, 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.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Western Energy Services Corp shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.