Jean-Marc Lulin became the CEO of Azimut Exploration Inc. (CVE:AZM) in 2003. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jean-Marc Lulin's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Azimut Exploration Inc. has a market cap of CA$25m, and reported total annual CEO compensation of CA$252k for the year to August 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$178k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$180k.
Thus we can conclude that Jean-Marc Lulin receives more in total compensation than the median of a group of companies in the same market, and of similar size to Azimut Exploration Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Azimut Exploration, below.
Is Azimut Exploration Inc. Growing?
Azimut Exploration Inc. has increased its earnings per share (EPS) by an average of 43% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.2%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Azimut Exploration Inc. Been A Good Investment?
Azimut Exploration Inc. has generated a total shareholder return of 26% 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 total CEO remuneration at Azimut Exploration Inc. 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Azimut Exploration (free visualization of insider trades).
Important note: Azimut 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.
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 email@example.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.