Why Storm Resources Ltd.'s (TSE:SRX) CEO Pay Matters To You
Brian Lavergne has been the CEO of Storm Resources Ltd. (TSE:SRX) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Storm Resources
How Does Brian Lavergne's Compensation Compare With Similar Sized Companies?
Our data indicates that Storm Resources Ltd. is worth CA$175m, and total annual CEO compensation is CA$629k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$264k. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$138k.
It would therefore appear that Storm Resources Ltd. pays Brian Lavergne 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.
You can see a visual representation of the CEO compensation at Storm Resources, below.
Is Storm Resources Ltd. Growing?
Storm Resources Ltd. has increased its earnings per share (EPS) by an average of 89% a year, over the last three years (using a line of best fit). Its revenue is up 25% over last year.
This demonstrates that the company has been improving recently. A good result. 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 Storm Resources Ltd. Been A Good Investment?
With a three year total loss of 67%, Storm Resources Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Storm Resources Ltd. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Storm Resources.
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.
