Shareholders Would Not Be Objecting To Crescent Point Energy Corp.'s (TSE:CPG) CEO Compensation And Here's Why

Key Insights

• Crescent Point Energy's Annual General Meeting to take place on 10th of May
• CEO Craig Bryksa's total compensation includes salary of CA$600.0k
• The total compensation is similar to the average for the industry
• Over the past three years, Crescent Point Energy's EPS grew by 11% and over the past three years, the total shareholder return was 148%

It would be hard to discount the role that CEO Craig Bryksa has played in delivering the impressive results at Crescent Point Energy Corp. (TSE:CPG) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 10th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Crescent Point Energy

How Does Total Compensation For Craig Bryksa Compare With Other Companies In The Industry?

According to our data, Crescent Point Energy Corp. has a market capitalization of CA$7.4b, and paid its CEO total annual compensation worth CA$4.9m over the year to December 2023. That's just a smallish increase of 6.2% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$600k.

On examining similar-sized companies in the Canadian Oil and Gas industry with market capitalizations between CA$5.5b and CA$16b, we discovered that the median CEO total compensation of that group was CA$5.0m. This suggests that Crescent Point Energy remunerates its CEO largely in line with the industry average. Furthermore, Craig Bryksa directly owns CA$13m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CA$600k	CA$575k	12%
Other	CA$4.3m	CA$4.0m	88%
Total Compensation	CA$4.9m	CA$4.6m	100%

Talking in terms of the industry, salary represented approximately 37% of total compensation out of all the companies we analyzed, while other remuneration made up 63% of the pie. Crescent Point Energy pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Crescent Point Energy Corp.'s Growth

Crescent Point Energy Corp.'s earnings per share (EPS) grew 11% per year over the last three years. Its revenue is down 9.2% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Crescent Point Energy Corp. Been A Good Investment?

Most shareholders would probably be pleased with Crescent Point Energy Corp. for providing a total return of 148% 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which doesn't sit too well with us) in Crescent Point Energy we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.