This insanony not workingarticle will reflect on the compensation paid to Darren Gee who has served as CEO of
Peyto Exploration & Development Corp.
(
TSE:PEY
) since 2007. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Peyto Exploration & Development.
See our latest analysis for Peyto Exploration & Development
How Does Total Compensation For Darren Gee Compare With Other Companies In The Industry?
According to our data, Peyto Exploration & Development Corp. has a market capitalization of CA$470m, and paid its CEO total annual compensation worth CA$1.5m over the year to December 2019. That's a notable decrease of 33% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$285k.
In comparison with other companies in the industry with market capitalizations ranging from CA$259m to CA$1.0b, the reported median CEO total compensation was CA$1.9m. So it looks like Peyto Exploration & Development compensates Darren Gee in line with the median for the industry. Furthermore, Darren Gee directly owns CA$5.7m worth of shares in the company, implying that they are deeply invested in the company's success.
Component
2019
2018
Proportion (2019)
Salary
CA$285k
CA$285k
19%
Other
CA$1.2m
CA$2.0m
81%
Total Compensation
CA$1.5m
CA$2.2m
100%
On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. Peyto Exploration & Development pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
ceo-compensation
A Look at Peyto Exploration & Development Corp.'s Growth Numbers
Over the last three years, Peyto Exploration & Development Corp. has shrunk its earnings per share by 57% per year. It saw its revenue drop 14% over the last year.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check
this free visual depiction of
what analysts expect
for the future
.
Has Peyto Exploration & Development Corp. Been A Good Investment?
With a three year total loss of 77% for the shareholders, Peyto Exploration & Development Corp. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Story continues
In Summary...
As we touched on above, Peyto Exploration & Development Corp. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified
1 warning sign for Peyto Exploration & Development
that investors should think about before committing capital to this stock.
Of course,
you might find a fantastic investment by looking at a different set of stocks.
So take a peek at this
free
list of interesting companies.
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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