It's Unlikely That HighPeak Energy, Inc.'s (NASDAQ:HPK) CEO Will See A Huge Pay Rise This Year

Key Insights

• HighPeak Energy will host its Annual General Meeting on 4th of June
• Salary of US$2.00m is part of CEO Jack Hightower's total remuneration
• Total compensation is 57% above industry average
• HighPeak Energy's total shareholder return over the past three years was 57% while its EPS grew by 18% over the past three years

CEO Jack Hightower has done a decent job of delivering relatively good performance at HighPeak Energy, Inc. (NASDAQ:HPK) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 4th of June. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for HighPeak Energy

How Does Total Compensation For Jack Hightower Compare With Other Companies In The Industry?

According to our data, HighPeak Energy, Inc. has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$9.2m over the year to December 2023. We note that's a decrease of 16% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$2.0m.

On comparing similar companies from the American Oil and Gas industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$5.9m. Hence, we can conclude that Jack Hightower is remunerated higher than the industry median. Furthermore, Jack Hightower directly owns US$72m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$2.0m	US$1.3m	22%
Other	US$7.2m	US$9.7m	78%
Total Compensation	US$9.2m	US$11m	100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. HighPeak Energy is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at HighPeak Energy, Inc.'s Growth Numbers

HighPeak Energy, Inc. has seen its earnings per share (EPS) increase by 18% a year over the past three years. In the last year, its revenue is up 32%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has HighPeak Energy, Inc. Been A Good Investment?

Most shareholders would probably be pleased with HighPeak Energy, Inc. for providing a total return of 57% over three years. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for HighPeak Energy you should be aware of, and 1 of them shouldn't be ignored.

Important note: HighPeak 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.