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We Think Shareholders May Want To Consider A Review Of Yangarra Resources Ltd.'s (TSE:YGR) CEO Compensation Package

Shareholders will probably not be too impressed with the underwhelming results at Yangarra Resources Ltd. (TSE:YGR) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29 April 2021. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Yangarra Resources

How Does Total Compensation For Jim Evaskevich Compare With Other Companies In The Industry?

At the time of writing, our data shows that Yangarra Resources Ltd. has a market capitalization of CA$88m, and reported total annual CEO compensation of CA$856k for the year to December 2020. We note that's an increase of 71% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$300k.

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In comparison with other companies in the industry with market capitalizations under CA$250m, the reported median total CEO compensation was CA$254k. This suggests that Jim Evaskevich is paid more than the median for the industry. Moreover, Jim Evaskevich also holds CA$3.0m worth of Yangarra Resources stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

CA$300k

CA$300k

35%

Other

CA$556k

CA$200k

65%

Total Compensation

CA$856k

CA$500k

100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. Yangarra Resources sets aside a smaller share of compensation for 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.

ceo-compensation
ceo-compensation

Yangarra Resources Ltd.'s Growth

Yangarra Resources Ltd. has reduced its earnings per share by 38% a year over the last three years. In the last year, its revenue is down 39%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Yangarra Resources Ltd. Been A Good Investment?

Few Yangarra Resources Ltd. shareholders would feel satisfied with the return of -83% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Yangarra Resources you should be aware of, and 1 of them is significant.

Important note: Yangarra 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.