We Think Yangarra Resources Ltd.'s (TSE:YGR) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Yangarra Resources' Annual General Meeting to take place on 1st of May
• Total pay for CEO Jim Evaskevich includes CA$400.0k salary
• The overall pay is 696% above the industry average
• Over the past three years, Yangarra Resources' EPS fell by 24% and over the past three years, the total loss to shareholders 67%

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Shareholders will probably not be too impressed with the underwhelming results at Yangarra Resources Ltd. (TSE:YGR) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 1st of May. 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. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Yangarra Resources

Comparing Yangarra Resources Ltd.'s CEO Compensation With The Industry

Our data indicates that Yangarra Resources Ltd. has a market capitalization of CA$91m, and total annual CEO compensation was reported as CA$2.0m for the year to December 2024. Notably, that's an increase of 67% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$400k.

In comparison with other companies in the Canadian Oil and Gas industry with market capitalizations under CA$278m, the reported median total CEO compensation was CA$253k. Hence, we can conclude that Jim Evaskevich is remunerated higher than the industry median. Furthermore, Jim Evaskevich directly owns CA$4.0m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Yangarra Resources sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Yangarra Resources Ltd.'s Growth Numbers

Over the last three years, Yangarra Resources Ltd. has shrunk its earnings per share by 24% per year. It saw its revenue drop 18% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Yangarra Resources Ltd. Been A Good Investment?

The return of -67% over three years would not have pleased Yangarra Resources Ltd. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Yangarra Resources that investors should be aware of in a dynamic business environment.

Important note: Yangarra Resources is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.