Here's Why Shareholders Should Examine Petro-Victory Energy Corp.'s (CVE:VRY) CEO Compensation Package More Closely
Key Insights
Petro-Victory Energy to hold its Annual General Meeting on 20th of June
CEO Richard Gonzalez's total compensation includes salary of US$345.0k
The total compensation is 318% higher than the average for the industry
Petro-Victory Energy's EPS declined by 46% over the past three years while total shareholder loss over the past three years was 3.9%
Petro-Victory Energy Corp. (CVE:VRY) has not performed well recently and CEO Richard Gonzalez will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 20th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for Petro-Victory Energy
Comparing Petro-Victory Energy Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that Petro-Victory Energy Corp. has a market capitalization of CA$41m, and reported total annual CEO compensation of US$858k for the year to December 2023. Notably, that's a decrease of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$345k.
For comparison, other companies in the Canadian Oil and Gas industry with market capitalizations below CA$275m, reported a median total CEO compensation of US$205k. Accordingly, our analysis reveals that Petro-Victory Energy Corp. pays Richard Gonzalez north of the industry median. Furthermore, Richard Gonzalez directly owns CA$646k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$345k | US$365k | 40% |
Other | US$513k | US$628k | 60% |
Total Compensation | US$858k | US$993k | 100% |
On an industry level, around 38% of total compensation represents salary and 62% is other remuneration. Our data reveals that Petro-Victory Energy allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Petro-Victory Energy Corp.'s Growth Numbers
Over the last three years, Petro-Victory Energy Corp. has shrunk its earnings per share by 46% per year. It saw its revenue drop 27% over the last year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Petro-Victory Energy Corp. Been A Good Investment?
Since shareholders would have lost about 3.9% over three years, some Petro-Victory Energy Corp. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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. We did our research and identified 5 warning signs (and 2 which are significant) in Petro-Victory Energy we think you should know about.
Switching gears from Petro-Victory Energy, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com