Is Keyera Corp.’s (TSE:KEY) CEO Paid At A Competitive Rate?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

David Smith became the CEO of Keyera Corp. (TSE:KEY) in 2015. 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. 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.

View our latest analysis for Keyera

How Does David Smith’s Compensation Compare With Similar Sized Companies?

According to our data, Keyera Corp. has a market capitalization of CA$6.9b, and pays its CEO total annual compensation worth CA$3.9m. (This figure is for the year to December 2018). We note that’s an increase of 12% above last year. While we always look at total compensation first, we note that the salary component is less, at CA$600k. We looked at a group of companies with market capitalizations from CA$5.3b to CA$16b, and the median CEO total compensation was CA$6.1m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

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

TSX:KEY CEO Compensation, June 12th 2019
TSX:KEY CEO Compensation, June 12th 2019

Is Keyera Corp. Growing?

Keyera Corp. has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). It achieved revenue growth of 15% over the 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. Shareholders might be interested in this free visualization of analyst forecasts.

Has Keyera Corp. Been A Good Investment?

With a total shareholder return of 1.4% over three years, Keyera Corp. has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Keyera Corp. is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that David Smith is overcompensated.

It’s good to see reasonable payment of the CEO, even while the business improves. But it would be nice if insiders were also buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Keyera.

If you want to buy a stock that is better than Keyera, 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 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.