Shareholders Would Not Be Objecting To WesCan Energy Corp.'s (CVE:WCE) CEO Compensation And Here's Why

Key Insights

• WesCan Energy will host its Annual General Meeting on 28th of September
• CEO Greg Busby's total compensation includes salary of CA$205.0k
• The total compensation is similar to the average for the industry
• Over the past three years, WesCan Energy's EPS grew by 99% and over the past three years, the total shareholder return was 167%

The performance at WesCan Energy Corp. (CVE:WCE) has been quite strong recently and CEO Greg Busby has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 28th of September. 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.

View our latest analysis for WesCan Energy

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

At the time of writing, our data shows that WesCan Energy Corp. has a market capitalization of CA$3.3m, and reported total annual CEO compensation of CA$205k for the year to March 2023. There was no change in the compensation compared to last year. Notably, the salary of CA$205k is the entirety of the CEO compensation.

In comparison with other companies in the Canadian Oil and Gas industry with market capitalizations under CA$270m, the reported median total CEO compensation was CA$269k. This suggests that WesCan Energy remunerates its CEO largely in line with the industry average. What's more, Greg Busby holds CA$143k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$205k	CA$205k	100%
Other	-	-	-
Total Compensation	CA$205k	CA$205k	100%

On an industry level, around 34% of total compensation represents salary and 66% is other remuneration. Speaking on a company level, WesCan Energy prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at WesCan Energy Corp.'s Growth Numbers

WesCan Energy Corp. has seen its earnings per share (EPS) increase by 99% a year over the past three years. Its revenue is up 45% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has WesCan Energy Corp. Been A Good Investment?

We think that the total shareholder return of 167%, over three years, would leave most WesCan 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.

In Summary...

WesCan Energy rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which don't sit too well with us) in WesCan Energy we think you should know about.

Important note: WesCan Energy 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.