Why Tornado Global Hydrovacs Ltd.'s (CVE:TGH) CEO Pay Matters To You

The CEO of Tornado Global Hydrovacs Ltd. (CVE:TGH) is Bill Rollins. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Tornado Global Hydrovacs

How Does Bill Rollins's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Tornado Global Hydrovacs Ltd. has a market cap of CA$22m, and reported total annual CEO compensation of CA$291k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$196k. We took a group of companies with market capitalizations below CA$265m, and calculated the median CEO total compensation to be CA$205k.

Thus we can conclude that Bill Rollins receives more in total compensation than the median of a group of companies in the same market, and of similar size to Tornado Global Hydrovacs Ltd.. 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.

The graphic below shows how CEO compensation at Tornado Global Hydrovacs has changed from year to year.

Is Tornado Global Hydrovacs Ltd. Growing?

Tornado Global Hydrovacs Ltd. has increased its earnings per share (EPS) by an average of 74% a year, over the last three years (using a line of best fit). Its revenue is up 65% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Tornado Global Hydrovacs Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Tornado Global Hydrovacs Ltd. for providing a total return of 150% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We examined the amount Tornado Global Hydrovacs Ltd. 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tornado Global Hydrovacs (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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