How Should Investors React To Arctic Hunter Energy Inc.'s (CVE:AHU) CEO Pay?
Tim Coupland is the CEO of Arctic Hunter Energy Inc. (CVE:AHU). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Arctic Hunter Energy
How Does Tim Coupland's Compensation Compare With Similar Sized Companies?
Our data indicates that Arctic Hunter Energy Inc. is worth CA$545k, and total annual CEO compensation was reported as CA$96k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at CA$84k. We took a group of companies with market capitalizations below CA$278m, and calculated the median CEO total compensation to be CA$217k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Arctic Hunter Energy stands. Talking in terms of the sector, salary represented approximately 59% of total compensation out of all the companies we analysed, while other remuneration made up 41% of the pie. Arctic Hunter Energy is paying a higher share of its remuneration through a salary in comparison to the overall industry.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business. You can see, below, how CEO compensation at Arctic Hunter Energy has changed over time.
Is Arctic Hunter Energy Inc. Growing?
Arctic Hunter Energy Inc. has seen earnings per share (EPS) move positively by an average of 8.1% a year, over the last three years (using a line of best fit). Its revenue is down 9.2% over last year.
I generally like to see a little revenue growth, but I'm happy with the EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 Arctic Hunter Energy Inc. Been A Good Investment?
Given the total loss of 82% over three years, many shareholders in Arctic Hunter Energy Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It appears that Arctic Hunter Energy Inc. remunerates its CEO below most similar sized companies.
Tim Coupland is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. On another note, we've spotted 3 warning signs for Arctic Hunter Energy that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
