Myron Stadnyk became the CEO of ARC Resources Ltd. (TSE:ARX) in 2013. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Myron Stadnyk's Compensation Compare With Similar Sized Companies?
According to our data, ARC Resources Ltd. has a market capitalization of CA$2.1b, and paid its CEO total annual compensation worth CA$4.7m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$570k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from CA$1.3b to CA$4.2b, we found the median CEO total compensation was CA$2.9m.
It would therefore appear that ARC Resources Ltd. pays Myron Stadnyk 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 a visual representation of the CEO compensation at ARC Resources, below.
Is ARC Resources Ltd. Growing?
Over the last three years ARC Resources Ltd. has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). It achieved revenue growth of 3.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has ARC Resources Ltd. Been A Good Investment?
Since shareholders would have lost about 70% over three years, some ARC Resources Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by ARC Resources Ltd., 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, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying ARC Resources shares with their own money (free access).
Important note: ARC Resources 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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