Yahoo Finance The Compensation For Paramount Resources Ltd.'s (TSE:POU) CEO Looks Deserved And Here's Why
Key Insights
Paramount Resources' Annual General Meeting to take place on 2nd of May
CEO Jim Riddell's total compensation includes salary of CA$418.6k
Total compensation is similar to the industry average
Paramount Resources' total shareholder return over the past three years was 231% while its EPS grew by 48% over the past three years
The performance at Paramount Resources Ltd. (TSE:POU) has been quite strong recently and CEO Jim Riddell has played a role in it. Coming up to the next AGM on 2nd of May, shareholders would be keeping this in mind. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
View our latest analysis for Paramount Resources
How Does Total Compensation For Jim Riddell Compare With Other Companies In The Industry?
Our data indicates that Paramount Resources Ltd. has a market capitalization of CA$4.6b, and total annual CEO compensation was reported as CA$4.1m for the year to December 2023. We note that's a decrease of 11% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$419k.
For comparison, other companies in the Canadian Oil and Gas industry with market capitalizations ranging between CA$2.7b and CA$8.7b had a median total CEO compensation of CA$4.7m. This suggests that Paramount Resources remunerates its CEO largely in line with the industry average. What's more, Jim Riddell holds CA$26m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$419k | CA$404k | 10% |
Other | CA$3.7m | CA$4.2m | 90% |
Total Compensation | CA$4.1m | CA$4.6m | 100% |
Talking in terms of the industry, salary represented approximately 36% of total compensation out of all the companies we analyzed, while other remuneration made up 64% of the pie. It's interesting to note that Paramount Resources allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Paramount Resources Ltd.'s Growth Numbers
Over the past three years, Paramount Resources Ltd. has seen its earnings per share (EPS) grow by 48% per year. Its revenue is down 18% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Paramount Resources Ltd. Been A Good Investment?
Boasting a total shareholder return of 231% over three years, Paramount Resources Ltd. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Paramount Resources that investors should be aware of in a dynamic business environment.
Important note: Paramount Resources 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.
