How Much Does Renaissance Oil's (CVE:ROE) CEO Make?

This article will reflect on the compensation paid to Craig Steinke who has served as CEO of Renaissance Oil Corp. (CVE:ROE) since 2014. This analysis will also assess whether Renaissance Oil pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Renaissance Oil

Comparing Renaissance Oil Corp.'s CEO Compensation With the industry

According to our data, Renaissance Oil Corp. has a market capitalization of CA$30m, and paid its CEO total annual compensation worth CA$463k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$463k.

On comparing similar-sized companies in the industry with market capitalizations below CA$266m, we found that the median total CEO compensation was CA$352k. This suggests that Craig Steinke is paid more than the median for the industry. Furthermore, Craig Steinke directly owns CA$460k worth of shares in the company.

Speaking on an industry level, nearly 47% of total compensation represents salary, while the remainder of 53% is other remuneration. At the company level, Renaissance Oil pays Craig Steinke solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Renaissance Oil Corp.'s Growth

Renaissance Oil Corp. has seen its earnings per share (EPS) increase by 56% a year over the past three years. It saw its revenue drop 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Renaissance Oil Corp. Been A Good Investment?

Since shareholders would have lost about 70% over three years, some Renaissance Oil Corp. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Renaissance Oil rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Renaissance Oil Corp. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 4 warning signs for Renaissance Oil that investors should look into moving forward.

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.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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