Yahoo Finance Shareholders Would Not Be Objecting To Athabasca Oil Corporation's (TSE:ATH) CEO Compensation And Here's Why
Key Insights
Athabasca Oil will host its Annual General Meeting on 9th of May
CEO Rob Broen's total compensation includes salary of CA$558.3k
The overall pay is comparable to the industry average
Athabasca Oil's total shareholder return over the past three years was 549% while its EPS grew by 67% over the past three years
It would be hard to discount the role that CEO Rob Broen has played in delivering the impressive results at Athabasca Oil Corporation (TSE:ATH) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 9th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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.
See our latest analysis for Athabasca Oil
How Does Total Compensation For Rob Broen Compare With Other Companies In The Industry?
According to our data, Athabasca Oil Corporation has a market capitalization of CA$2.6b, and paid its CEO total annual compensation worth CA$3.4m over the year to December 2023. Notably, that's a decrease of 35% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$558k.
For comparison, other companies in the Canadian Oil and Gas industry with market capitalizations ranging between CA$1.4b and CA$4.4b had a median total CEO compensation of CA$3.3m. So it looks like Athabasca Oil compensates Rob Broen in line with the median for the industry. Moreover, Rob Broen also holds CA$24m worth of Athabasca Oil stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$558k | CA$540k | 17% |
Other | CA$2.8m | CA$4.6m | 83% |
Total Compensation | CA$3.4m | CA$5.1m | 100% |
Speaking on an industry level, nearly 37% of total compensation represents salary, while the remainder of 63% is other remuneration. In Athabasca Oil's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Athabasca Oil Corporation's Growth
Over the past three years, Athabasca Oil Corporation has seen its earnings per share (EPS) grow by 67% per year. It saw its revenue drop 11% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Athabasca Oil Corporation Been A Good Investment?
Most shareholders would probably be pleased with Athabasca Oil Corporation for providing a total return of 549% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in 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.
So you may want to check if insiders are buying Athabasca Oil shares with their own money (free access).
Switching gears from Athabasca Oil, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
