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Ingram Gillmore has been the CEO of Gear Energy Ltd. (TSE:GXE) since 2010. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ingram Gillmore’s Compensation Compare With Similar Sized Companies?
Our data indicates that Gear Energy Ltd. is worth CA$138m, and total annual CEO compensation is CA$333k. (This is based on the year to December 2018). That’s below the compensation, last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$245k. We examined a group of similar sized companies, with market capitalizations of below CA$269m. The median CEO total compensation in that group is CA$150k.
Thus we can conclude that Ingram Gillmore receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gear Energy Ltd.. 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 Gear Energy has changed from year to year.
Is Gear Energy Ltd. Growing?
Over the last three years Gear Energy Ltd. has grown its earnings per share (EPS) by an average of 138% per year (using a line of best fit). It achieved revenue growth of 10% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Gear Energy Ltd. Been A Good Investment?
Gear Energy Ltd. has not done too badly by shareholders, with a total return of 1.6%, over three years. 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 Gear Energy Ltd., 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Gear Energy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.