In 2007 Rene Amirault was appointed CEO of Secure Energy Services Inc (TSE:SES). 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.
How Does Rene Amirault’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Secure Energy Services Inc has a market cap of CA$1.3b, and is paying total annual CEO compensation of CA$3m. Notably, that’s an increase of 18% over the year before. We looked at a group of companies with market capitalizations from CA$524m to CA$2.1b, and the median CEO compensation was CA$2m.
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. 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 Secure Energy Services has changed over time.
Is Secure Energy Services Inc Growing?
Secure Energy Services Inc has increased its earnings per share (EPS) by an average of 52% a year, over the last three years In the last year, its revenue is up 38%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Secure Energy Services Inc Been A Good Investment?
With a total shareholder return of 2.8% over three years, Secure Energy Services Inc has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same 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.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven’t been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling Secure Energy Services Inc shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.