Is Oryx Petroleum Corporation Limited’s (TSE:OXC) CEO Being Overpaid?

Vance Querio has been the CEO of Oryx Petroleum Corporation Limited (TSE:OXC) since 2016. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Oryx Petroleum

How Does Vance Querio’s Compensation Compare With Similar Sized Companies?

Our data indicates that Oryx Petroleum Corporation Limited is worth CA$127m, and total annual CEO compensation was reported as US$1.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$528k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$166k.

It would therefore appear that Oryx Petroleum Corporation Limited pays Vance Querio more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Oryx Petroleum, below.

TSX:OXC CEO Compensation, January 14th 2020
TSX:OXC CEO Compensation, January 14th 2020

Is Oryx Petroleum Corporation Limited Growing?

Over the last three years Oryx Petroleum Corporation Limited has grown its earnings per share (EPS) by an average of 113% per year (using a line of best fit). In the last year, its revenue is up 98%.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don’t have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Oryx Petroleum Corporation Limited Been A Good Investment?

With a three year total loss of 48%, Oryx Petroleum Corporation Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We examined the amount Oryx Petroleum Corporation Limited pays its CEO, and compared it to the amount paid by 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Oryx Petroleum shares (free trial).

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

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.

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. Thank you for reading.