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How Much is WesCan Energy's (CVE:WCE) CEO Getting Paid?

Simply Wall St
·3 min read

Greg Busby has been the CEO of WesCan Energy Corp. (CVE:WCE) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for WesCan Energy.

See our latest analysis for WesCan Energy

Comparing WesCan Energy Corp.'s CEO Compensation With the industry

Our data indicates that WesCan Energy Corp. has a market capitalization of CA$941k, and total annual CEO compensation was reported as CA$185k for the year to March 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary of CA$185k is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below CA$263m, we found that the median total CEO compensation was CA$338k. Accordingly, WesCan Energy pays its CEO under the industry median.

Component

2020

2019

Proportion (2020)

Salary

CA$185k

CA$185k

100%

Other

-

-

-

Total Compensation

CA$185k

CA$185k

100%

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. At the company level, WesCan Energy pays Greg Busby solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

WesCan Energy Corp.'s Growth

Over the last three years, WesCan Energy Corp. has shrunk its earnings per share by 110% per year. In the last year, its revenue is down 37%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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?

Given the total shareholder loss of 25% over three years, many shareholders in WesCan Energy Corp. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

WesCan Energy pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Greg is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. EPS growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 5 warning signs for WesCan Energy that you should be aware of before investing.

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.

This article by Simply Wall St is general in nature. 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.

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