Joel Dumaresq has been the CEO of Molori Energy Inc (CVE:MOL) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Joel Dumaresq’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Molori Energy Inc has a market cap of CA$3.1m, and is paying total annual CEO compensation of CA$292k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$240k. We took a group of companies with market capitalizations below CA$267m, and calculated the median CEO compensation to be CA$155k.
As you can see, Joel Dumaresq is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Molori Energy Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. Take a look at Molori Energy’s key growth metrics by clicking on this link to view earnings, revenue and cash flow.
The graphic below shows how CEO compensation at Molori Energy has changed from year to year.
Is Molori Energy Inc Growing?
On average over the last three years, Molori Energy Inc has grown earnings per share (EPS) by 80% each year. In the last year, its revenue is down -33%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Has Molori Energy Inc Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Molori Energy Inc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Molori Energy Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. 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. So you may want to check if insiders are buying Molori Energy shares with their own money (free access).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.