The Compensation For Topaz Energy Corp.'s (TSE:TPZ) CEO Looks Deserved And Here's Why

Key Insights

• Topaz Energy to hold its Annual General Meeting on 2nd of May
• Total pay for CEO Marty Staples includes CA$510.0k salary
• The overall pay is comparable to the industry average
• Topaz Energy's total shareholder return over the past three years was 83% while its EPS grew by 112% over the past three years

The performance at Topaz Energy Corp. (TSE:TPZ) has been quite strong recently and CEO Marty Staples has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 2nd of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Topaz Energy

Comparing Topaz Energy Corp.'s CEO Compensation With The Industry

According to our data, Topaz Energy Corp. has a market capitalization of CA$3.3b, and paid its CEO total annual compensation worth CA$3.7m over the year to December 2023. We note that's an increase of 31% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$510k.

On examining similar-sized companies in the Canadian Oil and Gas industry with market capitalizations between CA$1.4b and CA$4.4b, we discovered that the median CEO total compensation of that group was CA$3.0m. This suggests that Topaz Energy remunerates its CEO largely in line with the industry average. Furthermore, Marty Staples directly owns CA$6.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CA$510k	CA$465k	14%
Other	CA$3.2m	CA$2.4m	86%
Total Compensation	CA$3.7m	CA$2.9m	100%

Speaking on an industry level, nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. Topaz Energy 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.

Topaz Energy Corp.'s Growth

Topaz Energy Corp.'s earnings per share (EPS) grew 112% per year over the last three years. It saw its revenue drop 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Topaz Energy Corp. Been A Good Investment?

We think that the total shareholder return of 83%, over three years, would leave most Topaz Energy Corp. shareholders smiling. 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.

To Conclude...

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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Topaz Energy that investors should look into moving forward.

Switching gears from Topaz Energy, 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.