Sun. Feb 25th, 2024

The remuneration of big bosses in the energy sector has skyrocketed. che

Open in full screen mode

Rich Kruger is the president and CEO of Calgary-based oil company Suncor. This is one of the companies that achieved record profits in 2022.

The Canadian Press

Compensation for chief executive officers (CEOs) in the oil and gas sector has soared as economic activity resumes post-pandemic, a new report shows. It will likely increase even more when the Trans Mountain pipeline expansion is completed this year.

Consulting firm Bedford examined salaries, bonuses and other forms of executive compensation at 143 North American oil and gas companies, 68 of which were headquartered in Canada.

The study found that in 2022, the most recent year for which data is available, executive compensation in this sector increased sharply . It ranged from a median of $425,255 for companies with total assets under $100 million, to $16.6 million for companies with total assets over $30 billion. p>

Five of the seven large corporate asset segments featured in the report saw median CEO compensation increase by at least 20% in 2022 compared to the previous year. In some cases, the increase was as high as 75%.

The increases come as the oil and gas sector recovers from years of recession and low commodity prices. Russia's invasion of Ukraine in early 2022 sparked global fears over energy security, causing oil prices to soar.

Frank Galati, managing partner at the Bedford firm, attributes the increase in executive compensation in 2022 to the industry's strong position as energy demand has rebounded, alongside a slew of new terminals. ;export to the Gulf Coast of Mexico.

Loading in progressBruno Marchand and Valérie Plante respond to the insults of the conservative leader

ELSE ON INFO: Bruno Marchand and Valérie Plante respond to the insults of the conservative leader< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">In Canada, soaring oil prices have led a number of energy companies to report record profits in 2022.

Some companies have also been criticized by environmentalists and politicians for having redirected significant profits to shareholders, in the form of dividends and share buybacks , rather than prioritizing investments in the decarbonization of their activities.

Open in full screen mode

Top boss pay likely to rise even more as Trans pipeline expands Mountain will be completed this year.

Although data on executive compensation for 2023 is not yet publicly available, the Bedford firm already predicts that their compensation will increase in 2024.

The Trans Mountain pipeline expansion project, now 98% complete, is expected to add more than half a million barrels per day to Canadian oil export capacity.

Improved market access should help reduce the heavy crude differential Western Canada Select, the discount that Canadian oil companies generally give on their products, in part because of the lack of export capacity.

The Bedford therefore expects further increases in the compensation of executives in the Canadian oil and gas sector in the years to come.

By admin

Related Post