How Much Did Paramount Resources Ltd.'s (TSE:POU) CEO Pocket Last Year?
Jim Riddell became the CEO of Paramount Resources Ltd. (TSE:POU) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Paramount Resources
How Does Jim Riddell's Compensation Compare With Similar Sized Companies?
Our data indicates that Paramount Resources Ltd. is worth CA$691m, and total annual CEO compensation was reported as CA$2.5m for the year to January 2019. While we always look at total compensation first, we note that the salary component is less, at CA$411k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CA$263m to CA$1.1b, we found the median CEO total compensation was CA$1.4m.
It would therefore appear that Paramount Resources Ltd. pays Jim Riddell 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Paramount Resources has changed over time.
Is Paramount Resources Ltd. Growing?
Paramount Resources Ltd. has reduced its earnings per share by an average of 52% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 2.6%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Paramount Resources Ltd. Been A Good Investment?
Given the total loss of 70% over three years, many shareholders in Paramount Resources Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Paramount Resources Ltd. 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.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Paramount Resources insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 editorial-team@simplywallst.com. 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.
