Shareholders May Be More Conservative With Arrow Exploration Corp.'s (CVE:AXL) CEO Compensation For Now
Key Insights
Arrow Exploration to hold its Annual General Meeting on 20th of September
Salary of US$303.9k is part of CEO G. Abbott's total remuneration
Total compensation is 363% above industry average
Arrow Exploration's total shareholder return over the past three years was 725% while its EPS grew by 117% over the past three years
Under the guidance of CEO G. Abbott, Arrow Exploration Corp. (CVE:AXL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 20th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Arrow Exploration
Comparing Arrow Exploration Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that Arrow Exploration Corp. has a market capitalization of CA$79m, and reported total annual CEO compensation of US$919k for the year to December 2022. That's a notable increase of 41% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$304k.
In comparison with other companies in the Canadian Oil and Gas industry with market capitalizations under CA$271m, the reported median total CEO compensation was US$198k. Accordingly, our analysis reveals that Arrow Exploration Corp. pays G. Abbott north of the industry median. What's more, G. Abbott holds CA$1.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$304k | US$187k | 33% |
Other | US$615k | US$465k | 67% |
Total Compensation | US$919k | US$652k | 100% |
Speaking on an industry level, nearly 33% of total compensation represents salary, while the remainder of 67% is other remuneration. There isn't a significant difference between Arrow Exploration and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Arrow Exploration Corp.'s Growth
Arrow Exploration Corp.'s earnings per share (EPS) grew 117% per year over the last three years. It achieved revenue growth of 157% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Arrow Exploration Corp. Been A Good Investment?
Boasting a total shareholder return of 725% over three years, Arrow Exploration Corp. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Arrow Exploration that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
