The Compensation For WesCan Energy Corp.'s (CVE:WCE) CEO Looks Deserved And Here's Why
Key Insights
WesCan Energy will host its Annual General Meeting on 28th of September
CEO Greg Busby's total compensation includes salary of CA$205.0k
The total compensation is similar to the average for the industry
WesCan Energy's total shareholder return over the past three years was 167% while its EPS grew by 99% over the past three years
It would be hard to discount the role that CEO Greg Busby has played in delivering the impressive results at WesCan Energy Corp. (CVE:WCE) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 28th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
See our latest analysis for WesCan Energy
How Does Total Compensation For Greg Busby Compare With Other Companies In The Industry?
Our data indicates that WesCan Energy Corp. has a market capitalization of CA$3.3m, and total annual CEO compensation was reported as CA$205k for the year to March 2023. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$205k.
In comparison with other companies in the Canadian Oil and Gas industry with market capitalizations under CA$270m, the reported median total CEO compensation was CA$269k. So it looks like WesCan Energy compensates Greg Busby in line with the median for the industry. Furthermore, Greg Busby directly owns CA$143k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$205k | CA$205k | 100% |
Other | - | - | - |
Total Compensation | CA$205k | CA$205k | 100% |
Talking in terms of the industry, salary represented approximately 34% of total compensation out of all the companies we analyzed, while other remuneration made up 66% of the pie. On a company level, WesCan Energy prefers to reward its CEO through a salary, opting not to pay Greg Busby through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at WesCan Energy Corp.'s Growth Numbers
WesCan Energy Corp. has seen its earnings per share (EPS) increase by 99% a year over the past three years. Its revenue is up 45% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has WesCan Energy Corp. Been A Good Investment?
Boasting a total shareholder return of 167% over three years, WesCan Energy Corp. has done well by shareholders. 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.
To Conclude...
WesCan Energy pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which are a bit unpleasant) in WesCan Energy we think you should know about.
Switching gears from WesCan Energy, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
