Is Clearford Water Systems Inc.'s (CVE:CLI) CEO Paid Enough Relative To Peers?
In 2013 Kevin Loiselle was appointed CEO of Clearford Water Systems Inc. (CVE:CLI). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Clearford Water Systems
How Does Kevin Loiselle's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Clearford Water Systems Inc. has a market cap of CA$2.6m, and is paying total annual CEO compensation of CA$576k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$300k. We looked at a group of companies with market capitalizations under CA$263m, and the median CEO total compensation was CA$145k.
As you can see, Kevin Loiselle is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Clearford Water Systems Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Clearford Water Systems, below.
Is Clearford Water Systems Inc. Growing?
On average over the last three years, Clearford Water Systems Inc. has shrunk earnings per share by 20% each year (measured with a line of best fit). Its revenue is up 46% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Clearford Water Systems Inc. Been A Good Investment?
Since shareholders would have lost about 84% over three years, some Clearford Water Systems Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Clearford Water Systems Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Clearford Water Systems (free visualization of insider trades).
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.
