It Looks Like CWC Energy Services Corp.'s (CVE:CWC) CEO May Expect Their Salary To Be Put Under The Microscope

The results at CWC Energy Services Corp. (CVE:CWC) have been quite disappointing recently and CEO Duncan Au bears some responsibility for this. At the upcoming AGM on 16 June 2021, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for CWC Energy Services

Comparing CWC Energy Services Corp.'s CEO Compensation With the industry

According to our data, CWC Energy Services Corp. has a market capitalization of CA$73m, and paid its CEO total annual compensation worth CA$610k over the year to December 2020. We note that's an increase of 13% above last year. Notably, the salary which is CA$318.8k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below CA$242m, reported a median total CEO compensation of CA$610k. This suggests that CWC Energy Services remunerates its CEO largely in line with the industry average. Furthermore, Duncan Au directly owns CA$918k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	CA$319k	CA$360k	52%
Other	CA$292k	CA$182k	48%
Total Compensation	CA$610k	CA$542k	100%

Speaking on an industry level, nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. CWC Energy Services is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at CWC Energy Services Corp.'s Growth Numbers

Over the last three years, CWC Energy Services Corp. has shrunk its earnings per share by 103% per year. It saw its revenue drop 47% 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has CWC Energy Services Corp. Been A Good Investment?

With a three year total loss of 17% for the shareholders, CWC Energy Services Corp. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for CWC Energy Services (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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