It Looks Like Shareholders Would Probably Approve Ensign Energy Services Inc.'s (TSE:ESI) CEO Compensation Package

Key Insights

• Ensign Energy Services' Annual General Meeting to take place on 3rd of May
• Total pay for CEO Bob Geddes includes CA$795.4k salary
• The overall pay is comparable to the industry average
• Ensign Energy Services' EPS grew by 83% over the past three years while total shareholder return over the past three years was 123%

It would be hard to discount the role that CEO Bob Geddes has played in delivering the impressive results at Ensign Energy Services Inc. (TSE:ESI) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 3rd 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. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Ensign Energy Services

Comparing Ensign Energy Services Inc.'s CEO Compensation With The Industry

According to our data, Ensign Energy Services Inc. has a market capitalization of CA$465m, and paid its CEO total annual compensation worth CA$3.0m over the year to December 2023. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$795k.

On comparing similar companies from the Canadian Energy Services industry with market caps ranging from CA$273m to CA$1.1b, we found that the median CEO total compensation was CA$3.6m. From this we gather that Bob Geddes is paid around the median for CEOs in the industry. Moreover, Bob Geddes also holds CA$4.4m worth of Ensign Energy Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	CA$795k	CA$758k	26%
Other	CA$2.2m	CA$2.2m	74%
Total Compensation	CA$3.0m	CA$3.0m	100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. Ensign Energy Services pays out 26% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Ensign Energy Services Inc.'s Growth Numbers

Ensign Energy Services Inc. has seen its earnings per share (EPS) increase by 83% a year over the past three years. Its revenue is up 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Ensign Energy Services Inc. Been A Good Investment?

We think that the total shareholder return of 123%, over three years, would leave most Ensign Energy Services Inc. shareholders smiling. 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Ensign Energy Services that investors should think about before committing capital to this stock.

Switching gears from Ensign Energy Services, 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.