What Can We Learn About Wilton Resources' (CVE:WIL) CEO Compensation?

This article will reflect on the compensation paid to Richard Anderson who has served as CEO of Wilton Resources Inc. (CVE:WIL) since 2008. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Wilton Resources.

View our latest analysis for Wilton Resources

Comparing Wilton Resources Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Wilton Resources Inc. has a market capitalization of CA$20m, and reported total annual CEO compensation of CA$275k for the year to December 2019. We note that's an increase of 10% above last year. Notably, the salary which is CA$250.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below CA$256m, we found that the median total CEO compensation was CA$275k. This suggests that Wilton Resources remunerates its CEO largely in line with the industry average. Moreover, Richard Anderson also holds CA$421k worth of Wilton Resources stock directly under their own name.

Talking in terms of the industry, salary represented approximately 44% of total compensation out of all the companies we analyzed, while other remuneration made up 56% of the pie. Wilton Resources pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Wilton Resources Inc.'s Growth

Wilton Resources Inc.'s earnings per share (EPS) grew 54% per year over the last three years. Its revenue is up 2,473% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Wilton Resources Inc. Been A Good Investment?

Since shareholders would have lost about 43% over three years, some Wilton Resources Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Wilton Resources Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Richard is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 2 which can't be ignored) in Wilton Resources we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

If you’re looking to trade Wilton Resources, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.