Yahoo Finance What We Learned About Nostra Terra Oil and Gas' (LON:NTOG) CEO Pay
This article will reflect on the compensation paid to Matt Lofgran who has served as CEO of Nostra Terra Oil and Gas Company plc (LON:NTOG) since 2009. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Nostra Terra Oil and Gas
How Does Total Compensation For Matt Lofgran Compare With Other Companies In The Industry?
According to our data, Nostra Terra Oil and Gas Company plc has a market capitalization of UK£1.1m, and paid its CEO total annual compensation worth US$252k over the year to December 2019. This means that the compensation hasn't changed much from last year. In particular, the salary of US$250.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under UK£157m, the reported median total CEO compensation was US$344k. So it looks like Nostra Terra Oil and Gas compensates Matt Lofgran in line with the median for the industry. What's more, Matt Lofgran holds UK£116k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$250k | US$250k | 99% |
Other | US$2.2k | US$1.4k | 1% |
Total Compensation | US$252k | US$251k | 100% |
Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Nostra Terra Oil and Gas pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Nostra Terra Oil and Gas Company plc's Growth Numbers
Over the past three years, Nostra Terra Oil and Gas Company plc has seen its earnings per share (EPS) grow by 67% per year. It saw its revenue drop 21% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Nostra Terra Oil and Gas Company plc Been A Good Investment?
With a three year total loss of 81% for the shareholders, Nostra Terra Oil and Gas Company plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Nostra Terra Oil and Gas pays its CEO a majority of compensation through a salary. As we noted earlier, Nostra Terra Oil and Gas pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But on the bright side, earnings growth is positive over the same period. Considering positive earnings growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 5 warning signs for Nostra Terra Oil and Gas you should be aware of, and 3 of them don't sit too well with us.
Switching gears from Nostra Terra Oil and Gas, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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