Is Ensign Energy Services Inc’s (TSE:ESI) CEO Pay Justified?
Bob Geddes has been the CEO of Ensign Energy Services Inc (TSE:ESI) since 2007. 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.
View our latest analysis for Ensign Energy Services
How Does Bob Geddes’s Compensation Compare With Similar Sized Companies?
According to our data, Ensign Energy Services Inc has a market capitalization of CA$800m, and pays its CEO total annual compensation worth CA$2m. That’s a notable increase of 136% on last year. When we examined a selection of companies with market caps ranging from CA$525m to CA$2.1b, we found the median CEO compensation was CA$2m.
So Bob Geddes receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Ensign Energy Services has changed from year to year.
Is Ensign Energy Services Inc Growing?
On average over the last three years, Ensign Energy Services Inc has grown earnings per share (EPS) by 2.9% each year. In the last year, its revenue is up 14%.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while performance isn’t amazing, we think it really does seem quite respectable.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Ensign Energy Services Inc Been A Good Investment?
Given the total loss of 28% over three years, many shareholders in Ensign Energy Services Inc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Bob Geddes is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. This contrasts with the growth in CEO remuneration. So suffice it to say we don’t think the compensation is modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ensign Energy Services Inc (free visualization of insider trades).
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 editorial-team@simplywallst.com.
