Does Corridor Resources Inc.'s (TSE:CDH) CEO Pay Reflect Performance?

In 2014 Steve Moran was appointed CEO of Corridor Resources Inc. (TSE:CDH). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Corridor Resources

How Does Steve Moran's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Corridor Resources Inc. has a market cap of CA$59m, and reported total annual CEO compensation of CA$514k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$288k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$158k.

As you can see, Steve Moran is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Corridor Resources Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Corridor Resources, below.

Is Corridor Resources Inc. Growing?

Over the last three years Corridor Resources Inc. has grown its earnings per share (EPS) by an average of 102% per year (using a line of best fit). Its revenue is down 35% over last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Corridor Resources Inc. Been A Good Investment?

Boasting a total shareholder return of 68% over three years, Corridor Resources Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Corridor Resources 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. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Corridor Resources.

If you want to buy a stock that is better than Corridor Resources, this free list of high return, low debt companies is a great place to look.

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 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.