Yahoo Finance We Think Some Shareholders May Hesitate To Increase W&T Offshore, Inc.'s (NYSE:WTI) CEO Compensation
Key Insights
W&T Offshore will host its Annual General Meeting on 14th of June
CEO Tracy Krohn's total compensation includes salary of US$905.5k
The total compensation is 168% higher than the average for the industry
Over the past three years, W&T Offshore's EPS grew by 49% and over the past three years, the total loss to shareholders 54%
In the past three years, the share price of W&T Offshore, Inc. (NYSE:WTI) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 14th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for W&T Offshore
Comparing W&T Offshore, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that W&T Offshore, Inc. has a market capitalization of US$311m, and reported total annual CEO compensation of US$5.9m for the year to December 2023. We note that's a decrease of 52% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$906k.
On comparing similar companies from the American Oil and Gas industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$2.2m. This suggests that Tracy Krohn is paid more than the median for the industry. Furthermore, Tracy Krohn directly owns US$102m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$906k | US$1.2m | 15% |
Other | US$5.0m | US$11m | 85% |
Total Compensation | US$5.9m | US$12m | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. According to our research, W&T Offshore has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
W&T Offshore, Inc.'s Growth
W&T Offshore, Inc.'s earnings per share (EPS) grew 49% per year over the last three years. It saw its revenue drop 37% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has W&T Offshore, Inc. Been A Good Investment?
Few W&T Offshore, Inc. shareholders would feel satisfied with the return of -54% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
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 3 warning signs for W&T Offshore you should be aware of, and 2 of them are a bit unpleasant.
Important note: W&T Offshore 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.