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Should You Worry About Parkland Fuel Corporation's (TSE:PKI) CEO Pay Cheque?

Simply Wall St

Bob Espey has been the CEO of Parkland Fuel Corporation (TSE:PKI) since 2011. 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.

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View our latest analysis for Parkland Fuel

How Does Bob Espey's Compensation Compare With Similar Sized Companies?

According to our data, Parkland Fuel Corporation has a market capitalization of CA$6.0b, and pays its CEO total annual compensation worth CA$3.8m. (This is based on the year to December 2018). That's a notable increase of 58% on last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$778k. We examined companies with market caps from CA$2.7b to CA$8.6b, and discovered that the median CEO total compensation of that group was CA$4.0m.

So Bob Espey is paid around the average of 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.

The graphic below shows how CEO compensation at Parkland Fuel has changed from year to year.

TSX:PKI CEO Compensation, May 21st 2019

Is Parkland Fuel Corporation Growing?

Over the last three years Parkland Fuel Corporation has grown its earnings per share (EPS) by an average of 49% per year (using a line of best fit). Its revenue is up 38% over last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Parkland Fuel Corporation Been A Good Investment?

Most shareholders would probably be pleased with Parkland Fuel Corporation for providing a total return of 97% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Remuneration for Bob Espey is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Parkland Fuel shares with their own money (free access).

If you want to buy a stock that is better than Parkland Fuel, 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.