Phil Hodge has been the CEO of Pine Cliff Energy Ltd. (TSE:PNE) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.
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How Does Phil Hodge’s Compensation Compare With Similar Sized Companies?
Our data indicates that Pine Cliff Energy Ltd. is worth CA$74m, and total annual CEO compensation is CA$660k. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$275k. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO compensation was CA$157k.
Thus we can conclude that Phil Hodge receives more in total compensation than the median of a group of companies in the same market, and of similar size to Pine Cliff 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.
You can see, below, how CEO compensation at Pine Cliff Energy has changed over time.
Is Pine Cliff Energy Ltd. Growing?
Over the last three years Pine Cliff Energy Ltd. has shrunk its earnings per share by an average of 27% per year. In the last year, its revenue is down -24%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Pine Cliff Energy Ltd. Been A Good Investment?
Since shareholders would have lost about 70% over three years, some Pine Cliff Energy Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Pine Cliff 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.We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Pine Cliff Energy shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.