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Is Thermal Energy International Inc.'s (CVE:TMG) CEO Pay Justified?

Simply Wall St

In 2009 Bill Crossland was appointed CEO of Thermal Energy International Inc. (CVE:TMG). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Thermal Energy International

How Does Bill Crossland's Compensation Compare With Similar Sized Companies?

According to our data, Thermal Energy International Inc. has a market capitalization of CA$8.9m, and pays its CEO total annual compensation worth CA$273k. (This is based on the year to May 2018). While we always look at total compensation first, we note that the salary component is less, at CA$240k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$144k.

Thus we can conclude that Bill Crossland receives more in total compensation than the median of a group of companies in the same market, and of similar size to Thermal Energy International Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Thermal Energy International, below.

TSXV:TMG CEO Compensation, September 6th 2019

Is Thermal Energy International Inc. Growing?

Thermal Energy International Inc. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 52%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Thermal Energy International Inc. Been A Good Investment?

Most shareholders would probably be pleased with Thermal Energy International Inc. for providing a total return of 38% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at Thermal Energy International Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Thermal Energy International (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.