Is Western Pacific Trust Company’s (CVE:WP) CEO Paid Enough Relative To Peers?

Alison Alfer became the CEO of Western Pacific Trust Company (CVE:WP) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Western Pacific Trust

How Does Alison Alfer’s Compensation Compare With Similar Sized Companies?

Our data indicates that Western Pacific Trust Company is worth CA$4m, and total annual CEO compensation is CA$144k. We note that’s an increase of 23% above last year. We took a group of companies with market capitalizations below CA$262m, and calculated the median CEO compensation to be CA$157k.

So Alison Alfer 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, below, how CEO compensation at Western Pacific Trust has changed over time.

TSXV:WP CEO Compensation October 22nd 18
TSXV:WP CEO Compensation October 22nd 18

Is Western Pacific Trust Company Growing?

Over the last three years Western Pacific Trust Company has grown its earnings per share (EPS) by an average of 25% per year. Its revenue is up 13% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Western Pacific Trust Company Been A Good Investment?

I think that the total shareholder return of 50%, over three years, would leave most Western Pacific Trust Company shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Alison Alfer is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Western Pacific Trust Company (free visualization of insider trades).

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.