In 2011 Bob Espey was appointed CEO of Parkland Fuel Corporation (TSE:PKI). 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. 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 Bob Espey's Compensation Compare With Similar Sized Companies?
Our data indicates that Parkland Fuel Corporation is worth CA$7.1b, and total annual CEO compensation was reported as CA$3.8m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$778k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from CA$5.3b to CA$16b, and the median CEO total compensation was CA$4.9m.
So Bob Espey receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Parkland Fuel has changed over time.
Is Parkland Fuel Corporation Growing?
Parkland Fuel Corporation has increased its earnings per share (EPS) by an average of 59% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 20%.
This demonstrates that the company has been improving recently. A good result. 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 Parkland Fuel Corporation Been A Good Investment?
I think that the total shareholder return of 93%, over three years, would leave most Parkland Fuel Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Bob Espey is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Parkland Fuel shares (free trial).
If you want to buy a stock that is better than Parkland Fuel, this free list of high return, low debt companies is a great place to look.
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