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What Can We Conclude About Harfang Exploration's (CVE:HAR) CEO Pay?

Simply Wall St
·3 mins read

The CEO of Harfang Exploration Inc. (CVE:HAR) is François Goulet, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Harfang Exploration.

View our latest analysis for Harfang Exploration

How Does Total Compensation For François Goulet Compare With Other Companies In The Industry?

Our data indicates that Harfang Exploration Inc. has a market capitalization of CA$19m, and total annual CEO compensation was reported as CA$143k for the year to January 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of CA$143k is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below CA$263m, reported a median total CEO compensation of CA$158k. From this we gather that François Goulet is paid around the median for CEOs in the industry. Moreover, François Goulet also holds CA$418k worth of Harfang Exploration stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

CA$143k

CA$140k

100%

Other

-

-

-

Total Compensation

CA$143k

CA$140k

100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. Speaking on a company level, Harfang Exploration prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

Harfang Exploration Inc.'s Growth

Harfang Exploration Inc.'s earnings per share (EPS) grew 47% per year over the last three years. In the last year, its revenue is up 251%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Harfang Exploration Inc. Been A Good Investment?

Most shareholders would probably be pleased with Harfang Exploration Inc. for providing a total return of 49% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Harfang Exploration rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Harfang Exploration Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Harfang Exploration (2 make us uncomfortable!) that you should be aware of before investing here.

Switching gears from Harfang Exploration, 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.