Here's Why Shareholders Will Not Be Complaining About PHX Energy Services Corp.'s (TSE:PHX) CEO Pay Packet

Key Insights

• PHX Energy Services to hold its Annual General Meeting on 10th of May
• Salary of CA$491.4k is part of CEO John Hooks's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, PHX Energy Services' EPS grew by 88% and over the past three years, the total shareholder return was 205%

It would be hard to discount the role that CEO John Hooks has played in delivering the impressive results at PHX Energy Services Corp. (TSE:PHX) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 10th 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.

See our latest analysis for PHX Energy Services

Comparing PHX Energy Services Corp.'s CEO Compensation With The Industry

Our data indicates that PHX Energy Services Corp. has a market capitalization of CA$417m, and total annual CEO compensation was reported as CA$4.1m for the year to December 2023. Notably, that's an increase of 24% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$491k.

In comparison with other companies in the Canadian Energy Services industry with market capitalizations ranging from CA$274m to CA$1.1b, the reported median CEO total compensation was CA$3.6m. This suggests that PHX Energy Services remunerates its CEO largely in line with the industry average. What's more, John Hooks holds CA$41m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CA$491k	CA$468k	12%
Other	CA$3.6m	CA$2.8m	88%
Total Compensation	CA$4.1m	CA$3.3m	100%

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. PHX Energy Services sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

PHX Energy Services Corp.'s Growth

PHX Energy Services Corp. has seen its earnings per share (EPS) increase by 88% a year over the past three years. Its revenue is up 23% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and 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 PHX Energy Services Corp. Been A Good Investment?

Most shareholders would probably be pleased with PHX Energy Services Corp. for providing a total return of 205% over three years. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term 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. In our study, we found 4 warning signs for PHX Energy Services you should be aware of, and 2 of them are concerning.

Switching gears from PHX 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.