Ross Clarkson has been the CEO of TransGlobe Energy Corporation (NASDAQ:TGA) since 1996. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Ross Clarkson’s Compensation Compare With Similar Sized Companies?
Our data indicates that TransGlobe Energy Corporation is worth US$177m, and total annual CEO compensation is US$1m. That’s actually a decrease on the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$131m to CA$524m. The median total CEO compensation was CA$1m.
That means Ross Clarkson receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at TransGlobe Energy has changed over time.
Is TransGlobe Energy Corporation Growing?
On average over the last three years, TransGlobe Energy Corporation has grown earnings per share (EPS) by 13% each year. It achieved revenue growth of 101% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. 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 TransGlobe Energy Corporation Been A Good Investment?
Since shareholders would have lost about 5.2% over three years, some TransGlobe Energy Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Ross Clarkson is paid around the same as most CEOs of similar size companies.
We’d say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. This article has given you an idea about how to analyse CEO remuneration, but it’s important to look at other leaders in the company, too. So it makes sense to check how long the Board of Directors has been in place.
Of course TransGlobe Energy may not be the best stock to buy. So you may wish to see this free collection of other companies that have 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 firstname.lastname@example.org.