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Is Strad Energy Services Ltd’s (TSE:SDY) CEO Paid Enough To Stay Motivated?

In 2012 Andy Pernal was appointed CEO of Strad Energy Services Ltd (TSE:SDY). 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 – 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 Strad Energy Services

How Does Andy Pernal’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Strad Energy Services Ltd has a market cap of CA$92m, and is paying total annual CEO compensation of CA$520k. That’s below the compensation, last year. We took a group of companies with market capitalizations below CA$262m, and calculated the median CEO compensation to be CA$155k.

As you can see, Andy Pernal is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Strad Energy Services Ltd is paying too much. 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 Strad Energy Services has changed over time.

TSX:SDY CEO Compensation November 9th 18

Is Strad Energy Services Ltd Growing?

Strad Energy Services Ltd has increased its earnings per share (EPS) by an average of 35% a year, over the last three years Its revenue is up 14% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Strad Energy Services Ltd Been A Good Investment?

With a three year total loss of 20%, Strad Energy Services Ltd 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 Strad Energy Services 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. So you may want to check if insiders are buying Strad Energy Services Ltd shares with their own money (free access).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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.