Lynn Peterson became the CEO of SRC Energy Inc. (NYSEMKT:SRCI) in 2016. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for SRC Energy

How Does Lynn Peterson's Compensation Compare With Similar Sized Companies?

According to our data, SRC Energy Inc. has a market capitalization of US$1.6b, and pays its CEO total annual compensation worth US$6.1m. (This number is for the twelve months until December 2018). Notably, that's an increase of 15% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$730k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.7m.

Thus we can conclude that Lynn Peterson receives more in total compensation than the median of a group of companies in the same market, and of similar size to SRC Energy Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at SRC Energy has changed over time.

Is SRC Energy Inc. Growing?

SRC Energy Inc. has increased its earnings per share (EPS) by an average of 116% a year, over the last three years (using a line of best fit). It achieved revenue growth of 78% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has SRC Energy Inc. Been A Good Investment?

With a three year total loss of 14%, SRC Energy Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at SRC Energy Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. This doesn't look great when you consider CEO remuneration is up on last year. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SRC Energy (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.