In 2012 Erwin Joseph Godec was appointed CEO of Petrolia SE (OB:PSE). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Erwin Joseph Godec’s Compensation Compare With Similar Sized Companies?
Our data indicates that Petrolia SE is worth øre216m, and total annual CEO compensation is US$84k. That’s below the compensation, last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$319k.
Most shareholders would consider it a positive that Erwin Joseph Godec takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Petrolia has changed from year to year.
Is Petrolia SE Growing?
On average over the last three years, Petrolia SE has grown earnings per share (EPS) by 73% each year. It achieved revenue growth of 35% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don’t have analyst forecasts, but shareholders might want to examine this free detailed historical graph of earnings, revenue and cash flow.
Has Petrolia SE Been A Good Investment?
Since shareholders would have lost about 9.7% over three years, some Petrolia SE shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
It looks like Petrolia SE pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Erwin Joseph Godec is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. I like to research companies that do not pay too much to the CEO. One data point that I like to check is whether insiders have bought shares recently.
But note: Petrolia 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 email@example.com.