Granite Ridge Resources, Inc.'s (NYSE:GRNT) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Granite Ridge Resources to hold its Annual General Meeting on 23rd of May
• Salary of US$500.0k is part of CEO Luke Brandenberg's total remuneration
• The total compensation is 63% less than the average for the industry
• Granite Ridge Resources' EPS declined by 54% over the past three years while total shareholder loss over the past three years was 34%

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The underwhelming performance at Granite Ridge Resources, Inc. (NYSE:GRNT) recently has probably not pleased shareholders. At the upcoming AGM on 23rd of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Granite Ridge Resources

How Does Total Compensation For Luke Brandenberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that Granite Ridge Resources, Inc. has a market capitalization of US$742m, and reported total annual CEO compensation of US$1.5m for the year to December 2024. Notably, that's an increase of 19% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$500k.

On comparing similar companies from the American Oil and Gas industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$4.0m. Accordingly, Granite Ridge Resources pays its CEO under the industry median. What's more, Luke Brandenberg holds US$515k worth of shares in the company in their own name.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Granite Ridge Resources is paying a higher share of its remuneration through a 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.

Granite Ridge Resources, Inc.'s Growth

Over the last three years, Granite Ridge Resources, Inc. has shrunk its earnings per share by 54% per year. It achieved revenue growth of 6.3% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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 Granite Ridge Resources, Inc. Been A Good Investment?

Few Granite Ridge Resources, Inc. shareholders would feel satisfied with the return of -34% over three years. This suggests it would be unwise for the company to pay the CEO too 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 3 warning signs for Granite Ridge Resources (of which 1 shouldn't be ignored!) 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. 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.