Shareholders may be wondering what CEO Matt Lofgran plans to contribute to the less-than-great performance. to improve Nostra Terra Oil and Gas Company plc (LON: NTOG) recently. At the next Annual General Meeting on July 5th, 2021, you can influence the management’s decision-making process by passing resolutions, including the remuneration of the Executive Board. It has been shown that setting an appropriate level of Management Board remuneration creates incentives for management to act in the interests of the shareholders. In our opinion, the CEO compensation doesn’t look excessive and we’re discussing why.
Check out our latest analysis for Nostra Terra Oil and Gas
Nostra Terra Oil and Gas Company plc CEO compensation compared to the industry
Our data shows that Nostra Terra Oil and Gas Company plc has a market capitalization of Â£ 3.5 million and that the total annual CEO compensation for the year ended December 2020 was $ 228,000. This is a decrease of 9.8% over the course of the year before. The $ 205,000 salary in particular is a large part of the CEO’s total compensation.
For comparison, other companies in the industry with market capitalizations of less than Â£ 144 million reported an average total CEO compensation of $ 370,000. This suggests that Matt Lofgran is paid below the industry average. In addition, Matt Lofgran also holds Nostra Terra Oil and Gas shares valued at Â£ 193,000 directly under his own name.
|salary||205 thousand US dollars||$ 250,000||90%|
|Other||$ 23,000||$ 2.2,000||10%|
|Total compensation||228 thousand US dollars||252 thousand US dollars||100%|
At the industry level, around 76% of total compensation is paid to salaries and 24% to other compensation. Nostra Terra Oil and Gas pays 90% of the remuneration in the form of a salary, well above the industry average. When salary dominates total compensation, it suggests that CEO compensation is less focused on the variable component that is usually linked to performance.
A look at Nostra Terra Oil and Gas Company plc’s growth numbers
Nostra Terra Oil and Gas Company plc’s earnings per share (EPS) increased 31% per year for the past three years. Last year sales fell by 43%.
This shows that the company has been improving lately and is good news for shareholders. The lack of sales growth isn’t ideal, but it’s the bottom line that matters most in business. We don’t have analyst predictions, but you could understand the growth better by looking at this more detailed historical graph of earnings, revenue and cash flow.
Was Nostra Terra Oil and Gas Company plc a good investment?
The return of -86% over three years would not have pleased the shareholders of Nostra Terra Oil and Gas Company plc. Hence, it could be annoying to shareholders if the CEO were paid generously.
In summary …
The fact that shareholders generated negative stock price returns is certainly worrying. This is in contrast to robust EPS growth, which suggests that there is a huge gap between stock price and fundamentals. A main focus for the board of directors and management will be the alignment of the share price with the fundamentals. At the upcoming AGM, shareholders should take this opportunity to voice these concerns to the board of directors and reconsider their investment thesis regarding the company.
CEO compensation is simply one of the many factors to consider when studying company performance. In our study we found 5 warning signs for Nostra Terra Oil and Gas You should be aware of this, and 4 of them should not be ignored.
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