Robert Dunstan became the CEO of ESI Energy Services Inc. (CSE:OPI) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Robert Dunstan's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that ESI Energy Services Inc. has a market cap of CA$5.2m, and reported total annual CEO compensation of CA$415k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$272k. We looked at a group of companies with market capitalizations under CA$263m, and the median CEO total compensation was CA$211k.
As you can see, Robert Dunstan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ESI Energy Services Inc. is paying too much. 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 a visual representation of the CEO compensation at ESI Energy Services, below.
Is ESI Energy Services Inc. Growing?
Over the last three years ESI Energy Services Inc. has grown its earnings per share (EPS) by an average of 104% per year (using a line of best fit). It achieved revenue growth of 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has ESI Energy Services Inc. Been A Good Investment?
Given the total loss of 66% over three years, many shareholders in ESI Energy Services Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount ESI Energy Services Inc. pays its CEO, and compared it to the amount paid by 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. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if ESI Energy Services insiders are buying or selling shares.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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