Brian Moss has been the CEO of Crown Point Energy Inc. (CVE:CWV) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Brian Moss's Compensation Compare With Similar Sized Companies?
According to our data, Crown Point Energy Inc. has a market capitalization of CA$44m, and pays its CEO total annual compensation worth US$235k. (This number is for the twelve months until December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$235k. We examined a group of similar sized companies, with market capitalizations of below CA$263m. The median CEO total compensation in that group is CA$144k.
Thus we can conclude that Brian Moss receives more in total compensation than the median of a group of companies in the same market, and of similar size to Crown Point Energy Inc.. However, this doesn't necessarily mean the pay 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.
The graphic below shows how CEO compensation at Crown Point Energy has changed from year to year.
Is Crown Point Energy Inc. Growing?
Over the last three years Crown Point Energy Inc. has grown its earnings per share (EPS) by an average of 114% per year (using a line of best fit). Its revenue is up 210% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Crown Point Energy Inc. Been A Good Investment?
Crown Point Energy Inc. has served shareholders reasonably well, with a total return of 13% 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 compared total CEO remuneration at Crown Point Energy Inc. with the amount paid at companies with a similar market capitalization. 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. 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. Shareholders may want to check for free if Crown Point Energy insiders are buying or selling shares.
Important note: Crown Point Energy 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.
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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.