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Should You Worry About Hallador Energy Company's (NASDAQ:HNRG) CEO Pay Cheque?

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  • HNRG

In 2014 Brent Bilsland was appointed CEO of Hallador Energy Company (NASDAQ:HNRG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Hallador Energy

How Does Brent Bilsland's Compensation Compare With Similar Sized Companies?

According to our data, Hallador Energy Company has a market capitalization of US$122m, and pays its CEO total annual compensation worth US$546k. (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 US$385k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$474k.

So Brent Bilsland receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Hallador Energy, below.

NasdaqCM:HNRG CEO Compensation, September 11th 2019
NasdaqCM:HNRG CEO Compensation, September 11th 2019

Is Hallador Energy Company Growing?

Hallador Energy Company saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. Its revenue is up 22% over last year.

In the last three years the company has failed to grow earnings per share. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Hallador Energy Company Been A Good Investment?

Given the total loss of 34% over three years, many shareholders in Hallador Energy Company are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Brent Bilsland is paid around what is normal the leaders of comparable size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hallador Energy.

If you want to buy a stock that is better than Hallador Energy, this free list of high return, low debt companies is a great place to look.

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.