How Much is Athabasca Oil Corporation’s (TSE:ATH) CEO Getting Paid?
In 2015 Rob Broen was appointed CEO of Athabasca Oil Corporation (TSE:ATH). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Athabasca Oil
How Does Rob Broen’s Compensation Compare With Similar Sized Companies?
According to our data, Athabasca Oil Corporation has a market capitalization of CA$645m, and pays its CEO total annual compensation worth CA$4m. That’s a notable increase of 86% on last year. We examined companies with market caps from CA$263m to CA$1.1b, and discovered that the median CEO compensation of that group was CA$1m.
It would therefore appear that Athabasca Oil Corporation pays Rob Broen more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Athabasca Oil, below.
Is Athabasca Oil Corporation Growing?
Athabasca Oil Corporation has increased its earnings per share (EPS) by an average of 8.1% a year, over the last three years Its revenue is up 86% over last year.
It’s hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Athabasca Oil Corporation Been A Good Investment?
Since shareholders would have lost about 20% over three years, some Athabasca Oil Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared total CEO remuneration at Athabasca Oil Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. This doesn’t look great when you consider CEO remuneration is up on last year. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Athabasca Oil Corporation insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.
