Jeff Klenda has been the CEO of Ur-Energy Inc. (TSE:URE) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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 Jeff Klenda’s Compensation Compare With Similar Sized Companies?
According to our data, Ur-Energy Inc. has a market capitalization of CA$137m, and pays its CEO total annual compensation worth US$566k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$312k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$118k.
Thus we can conclude that Jeff Klenda receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ur-Energy 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, below, how CEO compensation at Ur-Energy has changed over time.
Is Ur-Energy Inc. Growing?
Ur-Energy Inc. has increased its earnings per share (EPS) by an average of 76% a year, over the last three years In the last year, its revenue is down -47%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Ur-Energy Inc. Been A Good Investment?
Ur-Energy Inc. has not done too badly by shareholders, with a total return of 4.8%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Ur-Energy Inc. pays its CEO, and compared it to the amount paid by 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. We also note that, over the same time frame, shareholder returns haven’t been bad. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ur-Energy (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 firstname.lastname@example.org.