Yahoo Finance Does Eagle Plains Resources Ltd.'s (CVE:EPL) CEO Pay Reflect Performance?
Tim Termuende has been the CEO of Eagle Plains Resources Ltd. (CVE:EPL) since 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Eagle Plains Resources
How Does Tim Termuende's Compensation Compare With Similar Sized Companies?
According to our data, Eagle Plains Resources Ltd. has a market capitalization of CA$9.3m, and paid its CEO total annual compensation worth CA$127k over the year to December 2018. We took a group of companies with market capitalizations below CA$282m, and calculated the median CEO total compensation to be CA$220k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Eagle Plains Resources stands. Speaking on an industry level, we can see that nearly 91% of total compensation represents salary, while the remainder of 9.1% is other remuneration. Speaking on a company level, Eagle Plains Resources does not pay a salary to Tim Termuende, preferring to remunerate the executive through non-salary compensation.
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 a visual representation of the CEO compensation at Eagle Plains Resources, below.
Is Eagle Plains Resources Ltd. Growing?
Eagle Plains Resources Ltd. has reduced its earnings per share by an average of 25% a year, over the last three years (measured with a line of best fit). Its revenue is up 60% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Eagle Plains Resources Ltd. Been A Good Investment?
With a three year total loss of 33%, Eagle Plains Resources Ltd. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Eagle Plains Resources Ltd. is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Tim Termuende is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. On another note, Eagle Plains Resources has 5 warning signs (and 1 which is significant) we think you should know about.
If you want to buy a stock that is better than Eagle Plains Resources, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
