Chris Buncic has been the CEO of Ascendant Resources Inc. (TSE:ASND) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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 Chris Buncic’s Compensation Compare With Similar Sized Companies?
Our data indicates that Ascendant Resources Inc. is worth CA$34m, and total annual CEO compensation is US$1.4m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$279k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$118k.
It would therefore appear that Ascendant Resources Inc. pays Chris Buncic 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Ascendant Resources, below.
Is Ascendant Resources Inc. Growing?
Ascendant Resources Inc. has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). Its revenue is up 60% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Ascendant Resources Inc. Been A Good Investment?
Boasting a total shareholder return of 288% over three years, Ascendant Resources Inc. has done well by shareholders. 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.
We compared total CEO remuneration at Ascendant Resources Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Ascendant Resources insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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 firstname.lastname@example.org.