Yahoo Finance Does BNK Petroleum Inc.'s (TSE:BKX) CEO Pay Matter?
In 2008 Wolf Regener was appointed CEO of BNK Petroleum Inc. (TSE:BKX). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
Check out our latest analysis for BNK Petroleum
How Does Wolf Regener's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BNK Petroleum Inc. has a market cap of CA$61m, and is paying total annual CEO compensation of US$369k. (This is based on the year to December 2017). Notably, the salary of US$369k is the vast majority of the CEO compensation. 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$107k.
Thus we can conclude that Wolf Regener receives more in total compensation than the median of a group of companies in the same market, and of similar size to BNK Petroleum Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at BNK Petroleum, below.
Is BNK Petroleum Inc. Growing?
On average over the last three years, BNK Petroleum Inc. has shrunk earnings per share by 1.9% each year (measured with a line of best fit). Its revenue is up 89% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has BNK Petroleum Inc. Been A Good Investment?
Given the total loss of 29% over three years, many shareholders in BNK Petroleum Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at BNK Petroleum Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if BNK Petroleum insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
