Key Insights

• NuVista Energy will host its Annual General Meeting on 7th of May

• Salary of CA$515.0k is part of CEO Jonathan Wright's total remuneration

• Total compensation is similar to the industry average

• NuVista Energy's EPS grew by 11% over the past three years while total shareholder return over the past three years was 412%

The performance at NuVista Energy Ltd. (TSE:NVA) has been quite strong recently and CEO Jonathan Wright has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 7th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for NuVista Energy

How Does Total Compensation For Jonathan Wright Compare With Other Companies In The Industry?

According to our data, NuVista Energy Ltd. has a market capitalization of CA$2.6b, and paid its CEO total annual compensation worth CA$3.3m over the year to December 2023. We note that's an increase of 17% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$515k.

For comparison, other companies in the Canadian Oil and Gas industry with market capitalizations ranging between CA$1.4b and CA$4.4b had a median total CEO compensation of CA$3.3m. So it looks like NuVista Energy compensates Jonathan Wright in line with the median for the industry. Furthermore, Jonathan Wright directly owns CA$10m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 37% of total compensation represents salary and 63% is other remuneration. It's interesting to note that NuVista Energy allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at NuVista Energy Ltd.'s Growth Numbers

NuVista Energy Ltd. has seen its earnings per share (EPS) increase by 11% a year over the past three years. In the last year, its revenue is down 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 NuVista Energy Ltd. Been A Good Investment?

We think that the total shareholder return of 412%, over three years, would leave most NuVista Energy Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

Whatever your view on compensation, you might want to check if insiders are buying or selling NuVista Energy shares (free trial).

Important note: NuVista Energy 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.