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Jeff Klenda became the CEO of Ur-Energy Inc. (TSE:URE) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Jeff Klenda’s Compensation Compare With Similar Sized Companies?
According to our data, Ur-Energy Inc. has a market capitalization of CA$157m, and pays its CEO total annual compensation worth US$566k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$312k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$119k.
Thus we can conclude that Jeff Klenda receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ur-Energy Inc.. However, this doesn’t necessarily mean the pay 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, below, how CEO compensation at Ur-Energy has changed over time.
Is Ur-Energy Inc. Growing?
Ur-Energy Inc. has increased its earnings per share (EPS) by an average of 76% a year, over the last three years (using a line of best fit). It saw its revenue drop -47% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ur-Energy Inc. Been A Good Investment?
Boasting a total shareholder return of 51% over three years, Ur-Energy Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Ur-Energy Inc. 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. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ur-Energy.
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 email@example.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.