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. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Brent Bilsland’s Compensation Compare With Similar Sized Companies?
According to our data, Hallador Energy Company has a market capitalization of US$23m, and paid its CEO total annual compensation worth US$546k over the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$385k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$616k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it’s no different in the case of Hallador Energy. On a sector level, around 18% of total compensation represents salary and 82% is other remuneration. It’s interesting to note that Hallador Energy pays out a greater portion of remuneration through salary, in comparison to the wider industry.
So Brent Bilsland 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 a visual representation of the CEO compensation at Hallador Energy, below.
Is Hallador Energy Company Growing?
Hallador Energy Company has reduced its earnings per share by an average of 61% a year, over the last three years (measured with a line of best fit). Its revenue is up 8.8% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Hallador Energy Company Been A Good Investment?
With a three year total loss of 90%, Hallador Energy Company would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Brent Bilsland is paid around what is normal for the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shifting gears from CEO pay for a second, we’ve spotted 5 warning signs for Hallador Energy you should be aware of, and 1 of them doesn’t sit too well with us.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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