Yahoo Finance Why We Think Shareholders May Be Considering Bumping Up Tourmaline Oil Corp.'s (TSE:TOU) CEO Compensation
Key Insights
Tourmaline Oil will host its Annual General Meeting on 5th of June
Total pay for CEO Mike Rose includes CA$600.0k salary
The overall pay is 44% below the industry average
Tourmaline Oil's EPS grew by 15% over the past three years while total shareholder return over the past three years was 184%
The impressive results at Tourmaline Oil Corp. (TSE:TOU) recently will be great news for shareholders. At the upcoming AGM on 5th of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
View our latest analysis for Tourmaline Oil
Comparing Tourmaline Oil Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that Tourmaline Oil Corp. has a market capitalization of CA$24b, and reported total annual CEO compensation of CA$5.7m for the year to December 2023. Notably, that's an increase of 16% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$600k.
On comparing similar companies in the Canadian Oil and Gas industry with market capitalizations above CA$11b, we found that the median total CEO compensation was CA$10m. Accordingly, Tourmaline Oil pays its CEO under the industry median. What's more, Mike Rose holds CA$1.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$600k | CA$600k | 11% |
Other | CA$5.1m | CA$4.3m | 89% |
Total Compensation | CA$5.7m | CA$4.9m | 100% |
On an industry level, roughly 39% of total compensation represents salary and 61% is other remuneration. Tourmaline Oil sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Tourmaline Oil Corp.'s Growth
Tourmaline Oil Corp.'s earnings per share (EPS) grew 15% per year over the last three years. In the last year, its revenue is down 28%.
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 Tourmaline Oil Corp. Been A Good Investment?
We think that the total shareholder return of 184%, over three years, would leave most Tourmaline Oil Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Tourmaline Oil that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
