Here's Why We Think Kiwetinohk Energy Corp.'s (TSE:KEC) CEO Compensation Looks Fair for the time being

Key Insights

• Kiwetinohk Energy to hold its Annual General Meeting on 21st of May
• Total pay for CEO Pat Carlson includes CA$511.8k salary
• The total compensation is similar to the average for the industry
• Kiwetinohk Energy's EPS declined by 18% over the past three years while total shareholder return over the past three years was 37%

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Performance at Kiwetinohk Energy Corp. (TSE:KEC) has been reasonably good and CEO Pat Carlson has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 21st of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for Kiwetinohk Energy

How Does Total Compensation For Pat Carlson Compare With Other Companies In The Industry?

According to our data, Kiwetinohk Energy Corp. has a market capitalization of CA$727m, and paid its CEO total annual compensation worth CA$2.0m over the year to December 2024. Notably, that's an increase of 20% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$512k.

For comparison, other companies in the Canadian Oil and Gas industry with market capitalizations ranging between CA$280m and CA$1.1b had a median total CEO compensation of CA$2.1m. This suggests that Kiwetinohk Energy remunerates its CEO largely in line with the industry average. Furthermore, Pat Carlson directly owns CA$17m 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 Kiwetinohk Energy's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Kiwetinohk Energy Corp.'s Growth Numbers

Over the last three years, Kiwetinohk Energy Corp. has shrunk its earnings per share by 18% per year. It achieved revenue growth of 20% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Kiwetinohk Energy Corp. Been A Good Investment?

We think that the total shareholder return of 37%, over three years, would leave most Kiwetinohk Energy Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The overall company performance has been commendable, however there are still areas for improvement. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Kiwetinohk Energy 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.

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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.