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Is Ur-Energy Inc.'s (TSE:URE) CEO Pay Fair?

Simply Wall St

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In 2015 Jeff Klenda was appointed CEO of Ur-Energy Inc. (TSE:URE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Ur-Energy

How Does Jeff Klenda's Compensation Compare With Similar Sized Companies?

Our data indicates that Ur-Energy Inc. is worth CA$187m, and total annual CEO compensation is US$574k. (This figure is for the year to December 2018). That's a fairly small increase of 1.4% on year before. While we always look at total compensation first, we note that the salary component is less, at US$321k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$113k.

It would therefore appear that Ur-Energy Inc. pays Jeff Klenda 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 Ur-Energy has changed from year to year.

TSX:URE CEO Compensation, June 10th 2019

Is Ur-Energy Inc. Growing?

Ur-Energy Inc. has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). Its revenue is down -80% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.

Has Ur-Energy Inc. Been A Good Investment?

Most shareholders would probably be pleased with Ur-Energy Inc. for providing a total return of 56% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Ur-Energy Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Ur-Energy shares (free trial).

If you want to buy a stock that is better than Ur-Energy, this free list of high return, low debt companies is a great place to look.

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.