Headwater Exploration Inc.'s (TSE:HWX) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Headwater Exploration will host its Annual General Meeting on 8th of May
• Total pay for CEO Jason Jaskela includes CA$287.0k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Headwater Exploration's EPS grew by 51% and over the past three years, the total loss to shareholders 1.6%

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In the past three years, the share price of Headwater Exploration Inc. (TSE:HWX) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 8th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Headwater Exploration

Comparing Headwater Exploration Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Headwater Exploration Inc. has a market capitalization of CA$1.3b, and reported total annual CEO compensation of CA$2.4m for the year to December 2024. That's just a smallish increase of 6.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$287k.

On comparing similar companies from the Canadian Oil and Gas industry with market caps ranging from CA$554m to CA$2.2b, we found that the median CEO total compensation was CA$2.6m. From this we gather that Jason Jaskela is paid around the median for CEOs in the industry. Furthermore, Jason Jaskela directly owns CA$11m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. In Headwater Exploration's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

A Look at Headwater Exploration Inc.'s Growth Numbers

Over the past three years, Headwater Exploration Inc. has seen its earnings per share (EPS) grow by 51% per year. It achieved revenue growth of 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Headwater Exploration Inc. Been A Good Investment?

Given the total shareholder loss of 1.6% over three years, many shareholders in Headwater Exploration Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Headwater Exploration (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the 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.

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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.