Here's Why It's Unlikely That Yangarra Resources Ltd.'s (TSE:YGR) CEO Will See A Pay Rise This Year

Shareholders will probably not be too impressed with the underwhelming results at Yangarra Resources Ltd. (TSE:YGR) recently. At the upcoming AGM on 29 April 2021, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Yangarra Resources

How Does Total Compensation For Jim Evaskevich Compare With Other Companies In The Industry?

At the time of writing, our data shows that Yangarra Resources Ltd. has a market capitalization of CA$88m, and reported total annual CEO compensation of CA$856k for the year to December 2020. We note that's an increase of 71% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$300k.

For comparison, other companies in the industry with market capitalizations below CA$250m, reported a median total CEO compensation of CA$254k. Hence, we can conclude that Jim Evaskevich is remunerated higher than the industry median. What's more, Jim Evaskevich holds CA$3.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	CA$300k	CA$300k	35%
Other	CA$556k	CA$200k	65%
Total Compensation	CA$856k	CA$500k	100%

Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. In Yangarra Resources' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

Yangarra Resources Ltd.'s Growth

Yangarra Resources Ltd. has reduced its earnings per share by 38% a year over the last three years. In the last year, its revenue is down 39%.

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 Yangarra Resources Ltd. Been A Good Investment?

Few Yangarra Resources Ltd. shareholders would feel satisfied with the return of -83% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Yangarra Resources (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Yangarra Resources, 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. 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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