Yahoo Finance Is Cub Energy Inc.’s (CVE:KUB) CEO Pay Fair?
Mikhail Afendikov has been the CEO of Cub Energy Inc. (CVE:KUB) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Cub Energy
How Does Mikhail Afendikov’s Compensation Compare With Similar Sized Companies?
Our data indicates that Cub Energy Inc. is worth CA$6.3m, and total annual CEO compensation is US$330k. (This figure is for the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$330k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$120k.
Thus we can conclude that Mikhail Afendikov receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cub Energy Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Cub Energy has changed from year to year.
Is Cub Energy Inc. Growing?
On average over the last three years, Cub Energy Inc. has shrunk earnings per share by 68% each year (measured with a line of best fit). In the last year, its revenue is up 26%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Cub Energy Inc. Been A Good Investment?
Given the total loss of 33% over three years, many shareholders in Cub Energy Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We examined the amount Cub Energy Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cub Energy.
Important note: Cub Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
