Yahoo Finance Is Nostra Terra Oil and Gas Company plc (LON:NTOG) Overpaying Its CEO?
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Matt Lofgran has been the CEO of Nostra Terra Oil and Gas Company plc (LON:NTOG) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Nostra Terra Oil and Gas
How Does Matt Lofgran's Compensation Compare With Similar Sized Companies?
Our data indicates that Nostra Terra Oil and Gas Company plc is worth UK£3.7m, and total annual CEO compensation is US$251k. (This figure is for the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$250k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$317k.
So Matt Lofgran receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Nostra Terra Oil and Gas, below.
Is Nostra Terra Oil and Gas Company plc Growing?
Over the last three years Nostra Terra Oil and Gas Company plc has grown its earnings per share (EPS) by an average of 50% per year (using a line of best fit). In the last year, its revenue is up 56%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, 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 21%, Nostra Terra Oil and Gas Company plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Matt Lofgran is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Nostra Terra Oil and Gas shares (free trial).
If you want to buy a stock that is better than Nostra Terra Oil and Gas, this free list of high return, low debt companies is a great place to look.
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.
