Should You Worry About Tamarack Valley Energy Ltd’s (TSE:TVE) CEO Pay Cheque?

Aakaikkitstaki Schmidt became the CEO of Tamarack Valley Energy Ltd (TSE:TVE) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

Check out our latest analysis for Tamarack Valley Energy

How Does Aakaikkitstaki Schmidt’s Compensation Compare With Similar Sized Companies?

Our data indicates that Tamarack Valley Energy Ltd is worth CA$435m, and total annual CEO compensation is CA$2.5m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$383k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$265m to CA$1.1b. The median total CEO compensation was CA$1.4m.

As you can see, Aakaikkitstaki Schmidt is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Tamarack Valley Energy Ltd is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Tamarack Valley Energy has changed from year to year.

TSX:TVE CEO Compensation, August 7th 2019
TSX:TVE CEO Compensation, August 7th 2019

Is Tamarack Valley Energy Ltd Growing?

Tamarack Valley Energy Ltd has increased its earnings per share (EPS) by an average of 100% a year, over the last three years (using a line of best fit). It achieved revenue growth of 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Has Tamarack Valley Energy Ltd Been A Good Investment?

Given the total loss of 46% over three years, many shareholders in Tamarack Valley Energy Ltd are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared total CEO remuneration at Tamarack Valley Energy Ltd with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tamarack Valley Energy.

If you want to buy a stock that is better than Tamarack Valley Energy, this free list of high return, low debt companies is a great place to look.

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 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.