Neil Korchinski has been the CEO of Petrus Resources Ltd. (TSE:PRQ) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Neil Korchinski’s Compensation Compare With Similar Sized Companies?
Our data indicates that Petrus Resources Ltd. is worth CA$9.6m, and total annual CEO compensation is CA$415k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$275k. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO total compensation was CA$142k.
It would therefore appear that Petrus Resources Ltd. pays Neil Korchinski 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. 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 Petrus Resources has changed over time.
Is Petrus Resources Ltd. Growing?
Over the last three years Petrus Resources Ltd. has grown its earnings per share (EPS) by an average of 37% per year (using a line of best fit). It saw its revenue drop -11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Has Petrus Resources Ltd. Been A Good Investment?
With a three year total loss of 90%, Petrus Resources Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Petrus Resources Ltd. 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Petrus Resources.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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