Is Corsa Coal Corp’s (CVE:CSO) CEO Incentives Align With Yours?

George Dethlefsen has been the CEO of Corsa Coal Corp (CVE:CSO) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Corsa Coal

How Does George Dethlefsen’s Compensation Compare With Similar Sized Companies?

According to our data, Corsa Coal Corp has a market capitalization of CA$85m, and pays its CEO total annual compensation worth US$788k. That’s less than last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$119k.

It would therefore appear that Corsa Coal Corp pays George Dethlefsen 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Corsa Coal, below.

TSXV:CSO CEO Compensation November 7th 18
TSXV:CSO CEO Compensation November 7th 18

Is Corsa Coal Corp Growing?

On average over the last three years, Corsa Coal Corp has grown earnings per share (EPS) by 98% each year. It achieved revenue growth of 75% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.

Has Corsa Coal Corp Been A Good Investment?

With a total shareholder return of 13% over three years, Corsa Coal Corp shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

We compared total CEO remuneration at Corsa Coal Corp 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.

However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven’t been bad. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. High CEO remuneration is not great, but it certainly doesn’t mean a stock will perform poorly. Still, shareholders might want to check if insiders have been selling.

But note: Corsa Coal may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 editorial-team@simplywallst.com.