Increases to CEO Compensation Might Be Put On Hold For Now at Rubellite Energy Corp. (TSE:RBY)

Key Insights

• Rubellite Energy will host its Annual General Meeting on 15th of May
• Total pay for CEO Sue Rose includes CA$416.0k salary
• The overall pay is 546% above the industry average
• Over the past three years, Rubellite Energy's EPS fell by 19% and over the past three years, the total loss to shareholders 61%

We've discovered 4 warning signs about Rubellite Energy. View them for free.

Shareholders of Rubellite Energy Corp. (TSE:RBY) will have been dismayed by the negative share price return over the last three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 15th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

View our latest analysis for Rubellite Energy

How Does Total Compensation For Sue Rose Compare With Other Companies In The Industry?

At the time of writing, our data shows that Rubellite Energy Corp. has a market capitalization of CA$154m, and reported total annual CEO compensation of CA$1.7m for the year to December 2024. Notably, that's a decrease 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$416k.

On comparing similar-sized companies in the Canadian Oil and Gas industry with market capitalizations below CA$277m, we found that the median total CEO compensation was CA$263k. This suggests that Sue Rose is paid more than the median for the industry. What's more, Sue Rose holds CA$8.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CA$416k	CA$405k	25%
Other	CA$1.3m	CA$1.7m	75%
Total Compensation	CA$1.7m	CA$2.1m	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. It's interesting to note that Rubellite 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.

Rubellite Energy Corp.'s Growth

Over the last three years, Rubellite Energy Corp. has shrunk its earnings per share by 19% per year. In the last year, its revenue is up 84%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Rubellite Energy Corp. Been A Good Investment?

The return of -61% over three years would not have pleased Rubellite Energy Corp. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Rubellite Energy (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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. 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.