How Much Is NuVista Energy's (TSE:NVA) CEO Getting Paid?

Jonathan Wright became the CEO of NuVista Energy Ltd. (TSE:NVA) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for NuVista Energy.

Check out our latest analysis for NuVista Energy

Comparing NuVista Energy Ltd.'s CEO Compensation With the industry

According to our data, NuVista Energy Ltd. has a market capitalization of CA$221m, and paid its CEO total annual compensation worth CA$1.8m over the year to December 2019. We note that's a decrease of 21% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$455k.

On comparing similar companies from the same industry with market caps ranging from CA$127m to CA$509m, we found that the median CEO total compensation was CA$982k. Accordingly, our analysis reveals that NuVista Energy Ltd. pays Jonathan Wright north of the industry median. What's more, Jonathan Wright holds CA$722k worth of shares in the company in their own name.

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. It's interesting to note that NuVista Energy allocates a smaller portion of compensation to salary 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 NuVista Energy Ltd.'s Growth Numbers

NuVista Energy Ltd. has reduced its earnings per share by 123% a year over the last three years. It saw its revenue drop 23% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 NuVista Energy Ltd. Been A Good Investment?

With a three year total loss of 87% for the shareholders, NuVista Energy Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, NuVista Energy Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Disappointingly, share price gains over the last three years have failed to materialize. To make matters worse, EPS growth has also been negative during this period. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for NuVista Energy that you should be aware of before investing.

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. 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.
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