Jim Evaskevich has been the CEO of Yangarra Resources Ltd. (TSE:YGR) since 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does Jim Evaskevich’s Compensation Compare With Similar Sized Companies?
Our data indicates that Yangarra Resources Ltd. is worth CA$274m, and total annual CEO compensation is CA$468k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at CA$240k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$135m to CA$540m. The median total CEO compensation was CA$818k.
A first glance this seems like a real positive for shareholders, since Jim Evaskevich is paid less than the average total compensation paid by similar sized companies. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Yangarra Resources has changed from year to year.
Is Yangarra Resources Ltd. Growing?
Yangarra Resources Ltd. has increased its earnings per share (EPS) by an average of 60% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 70%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Yangarra Resources Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Yangarra Resources Ltd. for providing a total return of 206% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It looks like Yangarra Resources Ltd. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Jim Evaskevich deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Yangarra Resources shares (free trial).
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.
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