Joel Dumaresq has been the CEO of Molori Energy Inc. (CVE:MOL) since 2016. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does Joel Dumaresq’s Compensation Compare With Similar Sized Companies?
Our data indicates that Molori Energy Inc. is worth CA$2.3m, and total annual CEO compensation is CA$292k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$240k. We looked at a group of companies with market capitalizations under CA$268m, and the median CEO compensation was CA$158k.
As you can see, Joel Dumaresq is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Molori Energy Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Molori Energy, below.
Is Molori Energy Inc. Growing?
Molori Energy Inc. has increased its earnings per share (EPS) by an average of 80% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -33%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Molori Energy Inc. Been A Good Investment?
Most shareholders would probably be pleased with Molori Energy Inc. for providing a total return of 67% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Molori Energy Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Molori Energy shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.