Yahoo Finance CWC Energy Services Corp.'s (CVE:CWC) CEO Might Not Expect Shareholders To Be So Generous This Year
CWC Energy Services Corp. (CVE:CWC) has not performed well recently and CEO Duncan Au 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 16 June 2021. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for CWC Energy Services
Comparing CWC Energy Services Corp.'s CEO Compensation With the industry
At the time of writing, our data shows that CWC Energy Services Corp. has a market capitalization of CA$73m, and reported total annual CEO compensation of CA$610k for the year to December 2020. We note that's an increase of 13% above last year. In particular, the salary of CA$318.8k, makes up a fairly large portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$242m, reported a median total CEO compensation of CA$610k. From this we gather that Duncan Au is paid around the median for CEOs in the industry. Moreover, Duncan Au also holds CA$918k worth of CWC Energy Services 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$319k | CA$360k | 52% |
Other | CA$292k | CA$182k | 48% |
Total Compensation | CA$610k | CA$542k | 100% |
On an industry level, roughly 36% of total compensation represents salary and 64% is other remuneration. CWC Energy Services pays out 52% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at CWC Energy Services Corp.'s Growth Numbers
CWC Energy Services Corp. has reduced its earnings per share by 103% a year over the last three years. Its revenue is down 47% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 CWC Energy Services Corp. Been A Good Investment?
Given the total shareholder loss of 17% over three years, many shareholders in CWC Energy Services Corp. are probably rather dissatisfied, to say the least. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for CWC Energy Services (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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