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How Should Investors Feel About Fancamp Exploration Ltd.’s (CVE:FNC) CEO Pay?

Scott Perkins

Peter Smith has been the CEO of Fancamp Exploration Ltd. (CVE:FNC) since 2014. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Fancamp Exploration

How Does Peter Smith’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Fancamp Exploration Ltd. has a market cap of CA$6.1m, and is paying total annual CEO compensation of CA$321k. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$125k. We examined a group of similar sized companies, with market capitalizations of below CA$269m. The median CEO compensation in that group is CA$159k.

Thus we can conclude that Peter Smith receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fancamp Exploration Ltd.. 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 Fancamp Exploration, below.

TSXV:FNC CEO Compensation December 20th 18

Is Fancamp Exploration Ltd. Growing?

Over the last three years Fancamp Exploration Ltd. has grown its earnings per share (EPS) by an average of 94% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Fancamp Exploration Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Fancamp Exploration Ltd. for providing a total return of 80% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

We compared the total CEO remuneration paid by Fancamp Exploration Ltd., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fancamp Exploration.

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

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.