Jason Skehar became the CEO of Bonavista Energy Corporation (TSE:BNP) in 2012. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Bonavista Energy
How Does Jason Skehar's Compensation Compare With Similar Sized Companies?
Our data indicates that Bonavista Energy Corporation is worth CA$202m, and total annual CEO compensation is CA$1.6m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$398k. We examined companies with market caps from CA$132m to CA$528m, and discovered that the median CEO total compensation of that group was CA$891k.
Thus we can conclude that Jason Skehar receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bonavista Energy Corporation. 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 Bonavista Energy, below.
Is Bonavista Energy Corporation Growing?
On average over the last three years, Bonavista Energy Corporation has grown earnings per share (EPS) by 84% each year (using a line of best fit). In the last year, its revenue is down -12%.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bonavista Energy Corporation Been A Good Investment?
Given the total loss of 80% over three years, many shareholders in Bonavista Energy Corporation 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 compared total CEO remuneration at Bonavista Energy Corporation with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Bonavista Energy shares with their own money (free access).