How Much is Gibson Energy Inc.'s (TSE:GEI) CEO Getting Paid?

Steve Spaulding became the CEO of Gibson Energy Inc. (TSE:GEI) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Gibson Energy

How Does Steve Spaulding's Compensation Compare With Similar Sized Companies?

Our data indicates that Gibson Energy Inc. is worth CA$3.3b, and total annual CEO compensation was reported as CA$5.4m for the year to December 2019. That's just a smallish increase of 6.7% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$784k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CA$2.7b to CA$8.7b, we found the median CEO total compensation was CA$4.3m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Gibson Energy stands. On a sector level, around 53% of total compensation represents salary and 47% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Gibson Energy, in sharp contrast to the overall sector.

That means Steve Spaulding receives fairly typical remuneration for the CEO of a company that size. 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 Gibson Energy, below.

Is Gibson Energy Inc. Growing?

Gibson Energy Inc. has seen earnings per share (EPS) move positively by an average of 115% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.0%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has Gibson Energy Inc. Been A Good Investment?

Boasting a total shareholder return of 64% over three years, Gibson Energy Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for Gibson Energy (1 is potentially serious!) that you should be aware of before investing here.

Important note: Gibson Energy 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.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.