How Much is TORC Oil & Gas Ltd.'s (TSE:TOG) CEO Getting Paid?
Brett Herman is the CEO of TORC Oil & Gas Ltd. (TSE:TOG). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for TORC Oil & Gas
How Does Brett Herman's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that TORC Oil & Gas Ltd. has a market cap of CA$770m, and reported total annual CEO compensation of CA$2.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$375k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$263m to CA$1.1b. The median total CEO compensation was CA$1.4m.
As you can see, Brett Herman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TORC Oil & Gas Ltd. is paying too much. 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 TORC Oil & Gas has changed over time.
Is TORC Oil & Gas Ltd. Growing?
On average over the last three years, TORC Oil & Gas Ltd. has grown earnings per share (EPS) by 139% each year (using a line of best fit). In the last year, its revenue is up 27%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has TORC Oil & Gas Ltd. Been A Good Investment?
Since shareholders would have lost about 53% over three years, some TORC Oil & Gas Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount TORC Oil & Gas Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling TORC Oil & Gas (free visualization of insider trades).
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.
