Should You Worry About Capital Power Corporation’s (TSE:CPX) CEO Pay?

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In 2009 Brian Vaasjo was appointed CEO of Capital Power Corporation (TSE:CPX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Capital Power

How Does Brian Vaasjo’s Compensation Compare With Similar Sized Companies?

Our data indicates that Capital Power Corporation is worth CA$3.0b, and total annual CEO compensation is CA$2.9m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$725k. We examined companies with market caps from CA$1.3b to CA$4.2b, and discovered that the median CEO compensation of that group was CA$2.8m.

That means Brian Vaasjo receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Capital Power, below.

TSX:CPX CEO Compensation, February 25th 2019
TSX:CPX CEO Compensation, February 25th 2019

Is Capital Power Corporation Growing?

Over the last three years Capital Power Corporation has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). In the last year, its revenue is up 19%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Capital Power Corporation Been A Good Investment?

I think that the total shareholder return of 108%, over three years, would leave most Capital Power Corporation shareholders smiling. 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.

In Summary…

Remuneration for Brian Vaasjo is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Capital Power.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.