Here's What We Think About Condor Petroleum's (TSE:CPI) CEO Pay

Don Streu has been the CEO of Condor Petroleum Inc. (TSE:CPI) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Condor Petroleum pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Condor Petroleum

Comparing Condor Petroleum Inc.'s CEO Compensation With the industry

According to our data, Condor Petroleum Inc. has a market capitalization of CA$25m, and paid its CEO total annual compensation worth CA$400k over the year to December 2019. We note that's a decrease of 10% compared to last year. Notably, the salary which is CA$375.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below CA$256m, we found that the median total CEO compensation was CA$294k. Accordingly, our analysis reveals that Condor Petroleum Inc. pays Don Streu north of the industry median. Furthermore, Don Streu directly owns CA$139k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. Condor Petroleum pays out 94% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Condor Petroleum Inc.'s Growth Numbers

Condor Petroleum Inc.'s earnings per share (EPS) grew 61% per year over the last three years. Its revenue is down 54% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Condor Petroleum Inc. Been A Good Investment?

Since shareholders would have lost about 15% over three years, some Condor Petroleum Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, Condor Petroleum Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its EPS growth, but it's disappointing to see negative shareholder returns over the same period. Considering overall performance, we can't say Don is underpaid, in fact compensation is definitely on the higher side.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Condor Petroleum that investors should be aware of in a dynamic business environment.

Switching gears from Condor Petroleum, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.
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