How Much is Whitecap Resources Inc’s (TSE:WCP) CEO Getting Paid?
Grant Fagerheim became the CEO of Whitecap Resources Inc (TSE:WCP) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Whitecap Resources
How Does Grant Fagerheim’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Whitecap Resources Inc has a market cap of CA$2.6b, and is paying total annual CEO compensation of CA$4m. We note that’s an increase of 29% above last year. We examined companies with market caps from CA$1.3b to CA$4.2b, and discovered that the median CEO compensation of that group was CA$3m.
It would therefore appear that Whitecap Resources Inc pays Grant Fagerheim 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.
The graphic below shows how CEO compensation at Whitecap Resources has changed from year to year.
Is Whitecap Resources Inc Growing?
On average over the last three years, Whitecap Resources Inc has grown earnings per share (EPS) by 31% each year. In the last year, its revenue is up 48%.
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.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Whitecap Resources Inc Been A Good Investment?
With a three year total loss of 38%, Whitecap Resources Inc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We examined the amount Whitecap Resources Inc 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.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. This contrasts with the growth in CEO remuneration, in the last year. 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. Shareholders may want to check for free if Whitecap Resources Inc insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.
