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How Should Investors Feel About Oryx Petroleum Corporation Limited’s (TSE:OXC) CEO Pay?

Kristin Rankin

Vance Querio has been the CEO of Oryx Petroleum Corporation Limited (TSE:OXC) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 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$102m, and is paying total annual CEO compensation of US$1.1m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$508k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$118k.

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. 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 Oryx Petroleum, below.

TSX:OXC CEO Compensation December 26th 18

Is Oryx Petroleum Corporation Limited Growing?

On average over the last three years, Oryx Petroleum Corporation Limited has grown earnings per share (EPS) by 110% each year. In the last year, its revenue is up 125%.

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.

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 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 the total CEO remuneration paid by Oryx Petroleum Corporation Limited, 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Oryx Petroleum shares with their own money (free access).

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.