Charle Gamba became the CEO of Canacol Energy Ltd (TSE:CNE) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does Charle Gamba’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Canacol Energy Ltd has a market cap of CA$743m, and is paying total annual CEO compensation of US$2.2m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$609k. When we examined a selection of companies with market caps ranging from CA$270m to CA$1.1b, we found the median CEO compensation was CA$1.4m.
It would therefore appear that Canacol Energy Ltd pays Charle Gamba 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, below, how CEO compensation at Canacol Energy has changed over time.
Is Canacol Energy Ltd Growing?
Canacol Energy Ltd has increased its earnings per share (EPS) by an average of 20% a year, over the last three years It achieved revenue growth of 32% over the 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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Canacol Energy Ltd Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Canacol Energy Ltd has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Canacol Energy Ltd 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Canacol Energy insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past 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 firstname.lastname@example.org.