Is Painted Pony Energy Ltd’s (TSE:PONY) CEO Paid At A Competitive Rate?

Pat Ward has been the CEO of Painted Pony Energy Ltd (TSE:PONY) since 2007. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Painted Pony Energy

How Does Pat Ward’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Painted Pony Energy Ltd has a market cap of CA$335m, and is paying total annual CEO compensation of CA$1.8m. Notably, that’s an increase of 38% over the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$133m to CA$531m. The median total CEO compensation was CA$950k.

As you can see, Pat Ward is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Painted Pony Energy Ltd is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Painted Pony Energy has changed from year to year.

TSX:PONY CEO Compensation November 22nd 18
TSX:PONY CEO Compensation November 22nd 18

Is Painted Pony Energy Ltd Growing?

On average over the last three years, Painted Pony Energy Ltd has grown earnings per share (EPS) by 63% each year. Its revenue is up 41% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.

Has Painted Pony Energy Ltd Been A Good Investment?

Given the total loss of 55% over three years, many shareholders in Painted Pony Energy Ltd are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared the total CEO remuneration paid by Painted Pony 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation.

But note: Painted Pony Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 editorial-team@simplywallst.com.