Tidewater Midstream and Infrastructure Ltd.'s (TSE:TWM) CEO Compensation Looks Acceptable To Us And Here's Why

Performance at Tidewater Midstream and Infrastructure Ltd. (TSE:TWM) has been reasonably good and CEO Joel MacLeod has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 June 2021. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for Tidewater Midstream and Infrastructure

Comparing Tidewater Midstream and Infrastructure Ltd.'s CEO Compensation With the industry

According to our data, Tidewater Midstream and Infrastructure Ltd. has a market capitalization of CA$458m, and paid its CEO total annual compensation worth CA$663k over the year to December 2020. That's a slight decrease of 6.7% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$175k.

On comparing similar companies from the same industry with market caps ranging from CA$247m to CA$990m, we found that the median CEO total compensation was CA$843k. So it looks like Tidewater Midstream and Infrastructure compensates Joel MacLeod in line with the median for the industry. Furthermore, Joel MacLeod directly owns CA$11m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	CA$175k	CA$1.0	26%
Other	CA$488k	CA$710k	74%
Total Compensation	CA$663k	CA$710k	100%

Talking in terms of the industry, salary represented approximately 53% of total compensation out of all the companies we analyzed, while other remuneration made up 47% of the pie. Tidewater Midstream and Infrastructure pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Tidewater Midstream and Infrastructure Ltd.'s Growth Numbers

Tidewater Midstream and Infrastructure Ltd.'s earnings per share (EPS) grew 6.9% per year over the last three years. Its revenue is up 32% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Tidewater Midstream and Infrastructure Ltd. Been A Good Investment?

With a total shareholder return of 24% over three years, Tidewater Midstream and Infrastructure Ltd. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Tidewater Midstream and Infrastructure (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Tidewater Midstream and Infrastructure is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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