Tony Marino became the CEO of Vermilion Energy Inc. (TSE:VET) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Tony Marino’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Vermilion Energy Inc. has a market cap of CA$4.8b, and is paying total annual CEO compensation of CA$6.2m. (This figure is for the year to December 2018). Notably, that’s an increase of 51% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at CA$668k. When we examined a selection of companies with market caps ranging from CA$2.7b to CA$8.6b, we found the median CEO total compensation was CA$4.0m.
It would therefore appear that Vermilion Energy Inc. pays Tony Marino 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 Vermilion Energy, below.
Is Vermilion Energy Inc. Growing?
Over the last three years Vermilion Energy Inc. has grown its earnings per share (EPS) by an average of 113% per year (using a line of best fit). In the last year, its revenue is up 58%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Vermilion Energy Inc. Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Vermilion Energy Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Vermilion Energy Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. This contrasts with the growth in CEO remuneration, in the last year. 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Vermilion Energy (free visualization of insider trades).
Important note: Vermilion Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 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.