Most Shareholders Will Probably Find That The CEO Compensation For Pulse Seismic Inc. (TSE:PSD) Is Reasonable

Key Insights

• Pulse Seismic will host its Annual General Meeting on 25th of April
• Salary of CA$344.3k is part of CEO Neal Coleman's total remuneration
• Total compensation is similar to the industry average
• Pulse Seismic's total shareholder return over the past three years was 71% while its EPS grew by 6.9% over the past three years

Under the guidance of CEO Neal Coleman, Pulse Seismic Inc. (TSE:PSD) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25th of April. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Pulse Seismic

How Does Total Compensation For Neal Coleman Compare With Other Companies In The Industry?

According to our data, Pulse Seismic Inc. has a market capitalization of CA$115m, and paid its CEO total annual compensation worth CA$1.0m over the year to December 2023. That's a notable increase of 93% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$344k.

On comparing similar-sized companies in the Canadian Energy Services industry with market capitalizations below CA$275m, we found that the median total CEO compensation was CA$1.0m. From this we gather that Neal Coleman is paid around the median for CEOs in the industry. Furthermore, Neal Coleman directly owns CA$932k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CA$344k	CA$334k	34%
Other	CA$680k	CA$197k	66%
Total Compensation	CA$1.0m	CA$531k	100%

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. According to our research, Pulse Seismic has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Pulse Seismic Inc.'s Growth Numbers

Pulse Seismic Inc. has seen its earnings per share (EPS) increase by 6.9% a year over the past three years. Its revenue is up 309% over the last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Pulse Seismic Inc. Been A Good Investment?

Boasting a total shareholder return of 71% over three years, Pulse Seismic Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Pulse Seismic that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.