Should You Worry About Granite Oil Corp.'s (TSE:GXO) CEO Pay Cheque?
Mike Kabanuk has been the CEO of Granite Oil Corp. (TSE:GXO) since 2015. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Granite Oil
How Does Mike Kabanuk's Compensation Compare With Similar Sized Companies?
Our data indicates that Granite Oil Corp. is worth CA$18m, and total annual CEO compensation was reported as CA$225k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$220k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$180k.
So Mike Kabanuk receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Granite Oil has changed over time.
Is Granite Oil Corp. Growing?
Over the last three years Granite Oil Corp. has grown its earnings per share (EPS) by an average of 55% per year (using a line of best fit). In the last year, its revenue is down 12%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Granite Oil Corp. Been A Good Investment?
Since shareholders would have lost about 88% over three years, some Granite Oil Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Mike Kabanuk is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Granite Oil.
Important note: Granite Oil may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 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.
