Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Alex R. MacAusland became the CEO of Western Energy Services Corp. (TSE:WRG) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alex R. MacAusland's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Western Energy Services Corp. has a market cap of CA$18m, and is paying total annual CEO compensation of CA$1.1m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$525k. We examined a group of similar sized companies, with market capitalizations of below CA$261m. The median CEO total compensation in that group is CA$120k.
Thus we can conclude that Alex R. MacAusland receives more in total compensation than the median of a group of companies in the same market, and of similar size to Western Energy Services Corp.. However, this doesn't necessarily mean the pay is too high. 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 Western Energy Services has changed over time.
Is Western Energy Services Corp. Growing?
Western Energy Services Corp. has increased its earnings per share (EPS) by an average of 61% a year, over the last three years (using a line of best fit). It saw its revenue drop -6.1% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Western Energy Services Corp. Been A Good Investment?
With a three year total loss of 94%, Western Energy Services Corp. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Western Energy Services Corp. pays its CEO, and compared it to the amount paid by 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Western Energy Services shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 firstname.lastname@example.org. 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.