Steve Orr has been the CEO of Shawcor Ltd. (TSE:SCL) since 2014. 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 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.
How Does Steve Orr's Compensation Compare With Similar Sized Companies?
Our data indicates that Shawcor Ltd. is worth CA$1.2b, and total annual CEO compensation is CA$2.6m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$824k. We looked at a group of companies with market capitalizations from CA$532m to CA$2.1b, and the median CEO total compensation was CA$2.1m.
So Steve Orr receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Shawcor, below.
Is Shawcor Ltd. Growing?
Over the last three years Shawcor Ltd. has grown its earnings per share (EPS) by an average of 77% per year (using a line of best fit). In the last year, its revenue is down -3.9%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Shawcor Ltd. Been A Good Investment?
With a three year total loss of 44%, Shawcor Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Steve Orr is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Shawcor (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.