ClearStream Energy Services Inc.'s (TSE:CSM) CEO Compensation Is Looking A Bit Stretched At The Moment

Under the guidance of CEO Yves Paletta, ClearStream Energy Services Inc. (TSE:CSM) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for ClearStream Energy Services

How Does Total Compensation For Yves Paletta Compare With Other Companies In The Industry?

According to our data, ClearStream Energy Services Inc. has a market capitalization of CA$9.3m, and paid its CEO total annual compensation worth CA$1.3m over the year to December 2020. We note that's an increase of 20% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$488k.

In comparison with other companies in the industry with market capitalizations under CA$242m, the reported median total CEO compensation was CA$610k. Hence, we can conclude that Yves Paletta is remunerated higher than the industry median.

Component	2020	2019	Proportion (2020)
Salary	CA$488k	CA$500k	38%
Other	CA$806k	CA$576k	62%
Total Compensation	CA$1.3m	CA$1.1m	100%

Talking in terms of the industry, salary represented approximately 36% of total compensation out of all the companies we analyzed, while other remuneration made up 64% of the pie. Although there is a difference in how total compensation is set, ClearStream Energy Services more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at ClearStream Energy Services Inc.'s Growth Numbers

ClearStream Energy Services Inc.'s earnings per share (EPS) grew 76% per year over the last three years. In the last year, its revenue is down 31%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has ClearStream Energy Services Inc. Been A Good Investment?

ClearStream Energy Services Inc. has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which are potentially serious) in ClearStream Energy Services we think you should know about.

Important note: ClearStream Energy Services is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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