Is CES Energy Solutions Corp.'s (TSE:CEU) CEO Paid Enough Relative To Peers?

In 2006 Tom Simons was appointed CEO of CES Energy Solutions Corp. (TSE:CEU). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 CES Energy Solutions

How Does Tom Simons's Compensation Compare With Similar Sized Companies?

Our data indicates that CES Energy Solutions Corp. is worth CA$508m, and total annual CEO compensation is CA$3.0m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$266m to CA$1.1b. The median total CEO compensation was CA$1.4m.

Thus we can conclude that Tom Simons receives more in total compensation than the median of a group of companies in the same market, and of similar size to CES Energy Solutions Corp.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at CES Energy Solutions, below.

Is CES Energy Solutions Corp. Growing?

On average over the last three years, CES Energy Solutions Corp. has grown earnings per share (EPS) by 118% each year (using a line of best fit). Its revenue is up 18% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

Has CES Energy Solutions Corp. Been A Good Investment?

Since shareholders would have lost about 58% over three years, some CES Energy Solutions Corp. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by CES Energy Solutions Corp., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. 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 CES Energy Solutions insiders are buying or selling shares.

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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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. Thank you for reading.