It's Probably Less Likely That Energy Fuels Inc.'s (TSE:EFR) CEO Will See A Huge Pay Rise This Year
Key Insights
- Energy Fuels will host its Annual General Meeting on 21st of May
- Salary of US$621.5k is part of CEO Mark Chalmers's total remuneration
- Total compensation is similar to the industry average
- Over the past three years, Energy Fuels' EPS fell by 31% and over the past three years, the total loss to shareholders 24%
In the past three years, the share price of Energy Fuels Inc. (TSE:EFR) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 21st of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.
Check out our latest analysis for Energy Fuels
Comparing Energy Fuels Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Energy Fuels Inc. has a market capitalization of CA$1.4b, and reported total annual CEO compensation of US$2.4m for the year to December 2024. That's a notable increase of 19% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$621k.
In comparison with other companies in the Canadian Oil and Gas industry with market capitalizations ranging from CA$557m to CA$2.2b, the reported median CEO total compensation was US$2.0m. So it looks like Energy Fuels compensates Mark Chalmers in line with the median for the industry. What's more, Mark Chalmers holds CA$5.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$621k | US$565k | 25% |
| Other | US$1.8m | US$1.5m | 75% |
| Total Compensation | US$2.4m | US$2.1m | 100% |
On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. Energy Fuels pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Energy Fuels Inc.'s Growth Numbers
Over the last three years, Energy Fuels Inc. has shrunk its earnings per share by 31% per year. It achieved revenue growth of 59% over the last year.
The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Energy Fuels Inc. Been A Good Investment?
With a three year total loss of 24% for the shareholders, Energy Fuels Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.
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. We did our research and spotted 1 warning sign for Energy Fuels that investors should look into moving forward.
Switching gears from Energy Fuels, 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.
Valuation is complex, but we're here to simplify it.
Discover if Energy Fuels might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.