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Bob Geddes became the CEO of Ensign Energy Services Inc. (TSE:ESI) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bob Geddes's Compensation Compare With Similar Sized Companies?
Our data indicates that Ensign Energy Services Inc. is worth CA$708m, and total annual CEO compensation is CA$1.9m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$586k. We looked at a group of companies with market capitalizations from CA$261m to CA$1.0b, and the median CEO total compensation was CA$1.4m.
As you can see, Bob Geddes is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Ensign Energy Services Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Ensign Energy Services, below.
Is Ensign Energy Services Inc. Growing?
Ensign Energy Services Inc. has increased its earnings per share (EPS) by an average of 70% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 33%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ensign Energy Services Inc. Been A Good Investment?
With a three year total loss of 25%, Ensign Energy Services Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Ensign Energy Services Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ensign Energy Services (free visualization of insider trades).
Important note: Ensign Energy Services 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 firstname.lastname@example.org. 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.