It's Unlikely That TC Energy Corporation's (TSE:TRP) CEO Will See A Huge Pay Rise This Year

Key Insights

• TC Energy will host its Annual General Meeting on 8th of May
• CEO Francois Poirier's total compensation includes salary of CA$1.20m
• Total compensation is 39% above industry average
• TC Energy's EPS grew by 29% over the past three years while total shareholder return over the past three years was 30%

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CEO Francois Poirier has done a decent job of delivering relatively good performance at TC Energy Corporation (TSE:TRP) recently. As shareholders go into the upcoming AGM on 8th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for TC Energy

How Does Total Compensation For Francois Poirier Compare With Other Companies In The Industry?

At the time of writing, our data shows that TC Energy Corporation has a market capitalization of CA$72b, and reported total annual CEO compensation of CA$15m for the year to December 2024. That's a notable increase of 14% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$1.2m.

For comparison, other companies in the Canadian Oil and Gas industry with market capitalizations above CA$11b, reported a median total CEO compensation of CA$11m. Hence, we can conclude that Francois Poirier is remunerated higher than the industry median. Moreover, Francois Poirier also holds CA$8.2m worth of TC Energy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	CA$1.2m	CA$1.2m	8%
Other	CA$14m	CA$12m	92%
Total Compensation	CA$15m	CA$13m	100%

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. TC Energy pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

TC Energy Corporation's Growth

TC Energy Corporation's earnings per share (EPS) grew 29% per year over the last three years. Its revenue is up 3.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 TC Energy Corporation Been A Good Investment?

TC Energy Corporation has served shareholders reasonably well, with a total return of 30% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for TC Energy that investors should be aware of in a dynamic business environment.

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.