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Should You Worry About Secure Energy Services Inc.'s (TSE:SES) CEO Pay?

Simply Wall St

Rene Amirault has been the CEO of Secure Energy Services Inc. (TSE:SES) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Secure Energy Services

How Does Rene Amirault's Compensation Compare With Similar Sized Companies?

Our data indicates that Secure Energy Services Inc. is worth CA$766m, and total annual CEO compensation was reported as CA$2.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$520k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from CA$261m to CA$1.0b, and the median CEO total compensation was CA$1.3m.

As you can see, Rene Amirault is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Secure Energy Services Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

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

TSX:SES CEO Compensation, January 9th 2020

Is Secure Energy Services Inc. Growing?

Secure Energy Services Inc. has increased its earnings per share (EPS) by an average of 103% a year, over the last three years (using a line of best fit). It achieved revenue growth of 2.2% over the last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Secure Energy Services Inc. Been A Good Investment?

With a three year total loss of 51%, Secure Energy Services Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Secure Energy Services Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Secure 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 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.

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. Thank you for reading.