Here’s What We Think About CES Energy Solutions Corp.’s (TSE:CEU) CEO Pay
Tom Simons has been the CEO of CES Energy Solutions Corp. (TSE:CEU) since 2006. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for CES Energy Solutions
How Does Tom Simons’s Compensation Compare With Similar Sized Companies?
Our data indicates that CES Energy Solutions Corp. is worth CA$806m, and total annual CEO compensation is CA$4.1m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$500k. We examined companies with market caps from CA$537m to CA$2.1b, and discovered that the median CEO compensation of that group was CA$2.0m.
It would therefore appear that CES Energy Solutions Corp. pays Tom Simons 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. 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 CES Energy Solutions, below.
Is CES Energy Solutions Corp. Growing?
Over the last three years CES Energy Solutions Corp. has grown its earnings per share (EPS) by an average of 77% per year. In the last year, its revenue is up 28%.
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.
It could be important to check this free visual depiction of what analysts expect for the future.
Has CES Energy Solutions Corp. Been A Good Investment?
Since shareholders would have lost about 17% over three years, some CES Energy Solutions Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We examined the amount CES Energy Solutions Corp. 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. On the other hand returns to investors over the same period have probably disappointed many. 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. Shareholders may want to check for free if CES Energy Solutions 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.
