How Much Does Midland Exploration's (CVE:MD) CEO Make?

This article will reflect on the compensation paid to Gino Roger who has served as CEO of Midland Exploration Inc. (CVE:MD) since 2006. This analysis will also assess whether Midland Exploration pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Midland Exploration

How Does Total Compensation For Gino Roger Compare With Other Companies In The Industry?

According to our data, Midland Exploration Inc. has a market capitalization of CA$65m, and paid its CEO total annual compensation worth CA$329k over the year to September 2020. That's just a smallish increase of 3.7% on last year. Notably, the salary which is CA$259.4k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under CA$254m, the reported median total CEO compensation was CA$150k. This suggests that Gino Roger is paid more than the median for the industry. What's more, Gino Roger holds CA$819k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 93% of total compensation represents salary and 6.9% is other remuneration. Midland Exploration pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Midland Exploration Inc.'s Growth

Over the last three years, Midland Exploration Inc. has shrunk its earnings per share by 1.5% per year. It saw its revenue drop 29% over the last year.

A lack of EPS improvement is not good to see. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Midland Exploration Inc. Been A Good Investment?

Midland Exploration Inc. has not done too badly by shareholders, with a total return of 3.4%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As we touched on above, Midland Exploration Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, EPS has not grown in three years, failing to impress us. And shareholder returns are decent but not great. So we think more research is needed, but we don't think the CEO is underpaid.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for Midland Exploration (2 are a bit concerning!) that you should be aware of before investing here.

Switching gears from Midland Exploration, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.
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