Should You Be Pleased About The CEO Pay At Falcon Oil & Gas Ltd.'s (CVE:FO)

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Philip O'Quigley became the CEO of Falcon Oil & Gas Ltd. (CVE:FO) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Falcon Oil & Gas

How Does Philip O'Quigley's Compensation Compare With Similar Sized Companies?

Our data indicates that Falcon Oil & Gas Ltd. is worth CA$245m, and total annual CEO compensation is US$504k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$390k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$694k.

So Philip O'Quigley receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Falcon Oil & Gas has changed over time.

Is Falcon Oil & Gas Ltd. Growing?

Over the last three years Falcon Oil & Gas Ltd. has shrunk its earnings per share by an average of 11% per year (measured with a line of best fit). It achieved revenue growth of 114% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.

Has Falcon Oil & Gas Ltd. Been A Good Investment?

Boasting a total shareholder return of 56% over three years, Falcon Oil & Gas Ltd. 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.

In Summary...

Remuneration for Philip O'Quigley is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Falcon Oil & Gas (free visualization of insider trades).

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.

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 editorial-team@simplywallst.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.