Does Storm Resources Ltd.’s (TSE:SRX) CEO Salary Compare Well With Others?

In 2010 Brian Lavergne was appointed CEO of Storm Resources Ltd. (TSE:SRX). 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. 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.

View our latest analysis for Storm Resources

How Does Brian Lavergne’s Compensation Compare With Similar Sized Companies?

Our data indicates that Storm Resources Ltd. is worth CA$182m, and total annual CEO compensation is CA$629k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$264k. We took a group of companies with market capitalizations below CA$267m, and calculated the median CEO total compensation to be CA$138k.

It would therefore appear that Storm Resources Ltd. pays Brian Lavergne 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. 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 Storm Resources, below.

TSX:SRX CEO Compensation, August 16th 2019
TSX:SRX CEO Compensation, August 16th 2019

Is Storm Resources Ltd. Growing?

On average over the last three years, Storm Resources Ltd. has grown earnings per share (EPS) by 89% each year (using a line of best fit). Its revenue is up 46% 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.

Has Storm Resources Ltd. Been A Good Investment?

Since shareholders would have lost about 66% 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.

In Summary…

We compared total CEO remuneration at Storm Resources Ltd. with the amount paid at companies with a similar market capitalization. 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 Storm Resources.

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.

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 editorial-team@simplywallst.com. 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.