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Rene Amirault has been the CEO of Secure Energy Services Inc. (TSE:SES) since 2007. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rene Amirault’s Compensation Compare With Similar Sized Companies?
According to our data, Secure Energy Services Inc. has a market capitalization of CA$1.3b, and pays its CEO total annual compensation worth CA$2.8m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$520k. We looked at a group of companies with market capitalizations from CA$531m to CA$2.1b, and the median CEO compensation was CA$2.0m.
Thus we can conclude that Rene Amirault receives more in total compensation than the median of a group of companies in the same market, and of similar size to Secure Energy Services Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Secure Energy Services, below.
Is Secure Energy Services Inc. Growing?
Over the last three years Secure Energy Services Inc. has grown its earnings per share (EPS) by an average of 74% per year (using a line of best fit). Its revenue is up 35% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has Secure Energy Services Inc. Been A Good Investment?
Most shareholders would probably be pleased with Secure Energy Services Inc. for providing a total return of 34% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Secure Energy Services Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Secure Energy Services shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.