In 2008 Wolf Regener was appointed CEO of BNK Petroleum Inc (TSE:BKX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Wolf Regener’s Compensation Compare With Similar Sized Companies?
Our data indicates that BNK Petroleum Inc is worth CA$80m, and total annual CEO compensation is US$369k. That’s less than last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$116k.
Thus we can conclude that Wolf Regener receives more in total compensation than the median of a group of companies in the same market, and of similar size to BNK Petroleum Inc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at BNK Petroleum has changed from year to year.
Is BNK Petroleum Inc Growing?
BNK Petroleum Inc has increased its earnings per share (EPS) by an average of 88% a year, over the last three years Its revenue is up 154% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don’t have analyst forecasts, you might want to assess this free data-rich visualization of earnings, revenue and cash flow.
Has BNK Petroleum Inc Been A Good Investment?
BNK Petroleum Inc has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by BNK Petroleum Inc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org.