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Brian Lavergne has been the CEO of Storm Resources Ltd. (TSE:SRX) since 2010. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Brian Lavergne’s Compensation Compare With Similar Sized Companies?
Our data indicates that Storm Resources Ltd. is worth CA$235m, and total annual CEO compensation is CA$629k. (This number is for the twelve months until December 2018). We note that’s an increase of 115% above last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$264k. We looked at a group of companies with market capitalizations from CA$134m to CA$537m, and the median CEO total compensation was CA$895k.
That means Brian Lavergne receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Storm Resources has changed over time.
Is Storm Resources Ltd. Growing?
Storm Resources Ltd. has increased its earnings per share (EPS) by an average of 90% a year, over the last three years (using a line of best fit). Its revenue is up 50% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Storm Resources Ltd. Been A Good Investment?
Since shareholders would have lost about 52% over three years, some Storm Resources Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Brian Lavergne is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. So you may want to check if insiders are buying Storm Resources shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.