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In 2014 George Dethlefsen was appointed CEO of Corsa Coal Corp. (CVE:CSO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does George Dethlefsen’s Compensation Compare With Similar Sized Companies?
Our data indicates that Corsa Coal Corp. is worth CA$62m, and total annual CEO compensation is US$788k. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$360k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$120k.
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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Corsa Coal has changed over time.
Is Corsa Coal Corp. Growing?
Corsa Coal Corp. has increased its earnings per share (EPS) by an average of 110% a year, over the last three years (using a line of best fit). It achieved revenue growth of 42% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Corsa Coal Corp. Been A Good Investment?
Corsa Coal Corp. has generated a total shareholder return of 8.3% over three years, so most shareholders wouldn’t be too disappointed. 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.
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 we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. So you may want to check if insiders are buying Corsa Coal shares with their own money (free access).
If you want to buy a stock that is better than Corsa Coal, this free list of high return, low debt companies is a great place to look.
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.