David Burghardt became the CEO of Altura Energy Inc. (CVE:ATU) in 2015. 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. This method should give us information to assess how appropriately the company pays the CEO.
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How Does David Burghardt's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Altura Energy Inc. has a market cap of CA$49m, and is paying total annual CEO compensation of CA$273k. (This number is for the twelve months until December 2018). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$183k. We examined a group of similar sized companies, with market capitalizations of below CA$269m. The median CEO total compensation in that group is CA$148k.
It would therefore appear that Altura Energy Inc. pays David Burghardt 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. 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 Altura Energy has changed over time.
Is Altura Energy Inc. Growing?
Over the last three years Altura Energy Inc. has grown its earnings per share (EPS) by an average of 129% per year (using a line of best fit). It achieved revenue growth of 7.2% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Altura Energy Inc. Been A Good Investment?
I think that the total shareholder return of 50%, over three years, would leave most Altura Energy Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Altura Energy Inc., and compared it to remuneration at a group of 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. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Altura Energy insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.