Why We Think The CEO Of Keyera Corp. (TSE:KEY) May Soon See A Pay Rise

Simply Wall St · 05/09 10:45

Key Insights

  • Keyera's Annual General Meeting to take place on 15th of May
  • CEO C. Setoguchi's total compensation includes salary of CA$735.0k
  • The overall pay is 54% below the industry average
  • Keyera's EPS grew by 13% over the past three years while total shareholder return over the past three years was 60%
Our free stock report includes 2 warning signs investors should be aware of before investing in Keyera. Read for free now.

The impressive results at Keyera Corp. (TSE:KEY) recently will be great news for shareholders. At the upcoming AGM on 15th of May, 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. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Keyera

Comparing Keyera Corp.'s CEO Compensation With The Industry

According to our data, Keyera Corp. has a market capitalization of CA$10.0b, and paid its CEO total annual compensation worth CA$5.3m over the year to December 2024. That's a fairly small increase of 3.2% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$735k.

On examining similar-sized companies in the Canadian Oil and Gas industry with market capitalizations between CA$5.6b and CA$17b, we discovered that the median CEO total compensation of that group was CA$12m. Accordingly, Keyera pays its CEO under the industry median. Furthermore, C. Setoguchi directly owns CA$10m worth of shares in the company, implying that they are deeply invested in the company's success.

Component 2024 2023 Proportion (2024)
Salary CA$735k CA$700k 14%
Other CA$4.6m CA$4.5m 86%
Total Compensation CA$5.3m CA$5.2m 100%

On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. It's interesting to note that Keyera allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
TSX:KEY CEO Compensation May 9th 2025

Keyera Corp.'s Growth

Over the past three years, Keyera Corp. has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 1.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Keyera Corp. Been A Good Investment?

We think that the total shareholder return of 60%, over three years, would leave most Keyera Corp. 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.

To Conclude...

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Keyera that investors should be aware of in a dynamic business environment.

Switching gears from Keyera, 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.