How Should Investors Feel About Pancontinental Resources Corporation's (CVE:PUC) CEO Pay?




  • In Business
  • 2019-12-09 18:28:42Z
  • By Simply Wall St.
How Should Investors Feel About Pancontinental Resources Corporation\
How Should Investors Feel About Pancontinental Resources Corporation\'s (CVE:PUC) CEO Pay?  

Thomas Croft has been the CEO of Pancontinental Resources Corporation (CVE:PUC) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Pancontinental Resources

How Does Thomas Croft's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Pancontinental Resources Corporation has a market cap of CA$3.6m, and reported total annual CEO compensation of CA$140k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$128k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$180k.

That means Thomas Croft receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Pancontinental Resources has changed over time.

Is Pancontinental Resources Corporation Growing?

Pancontinental Resources Corporation has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is down 63% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Pancontinental Resources Corporation Been A Good Investment?

Given the total loss of 69% over three years, many shareholders in Pancontinental Resources Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Thomas Croft is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last 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. So you may want to check if insiders are buying Pancontinental Resources shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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