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How Much Did PDC Energy's (NASDAQ:PDCE) CEO Pocket Last Year?

Bart Brookman has been the CEO of PDC Energy, Inc. (NASDAQ:PDCE) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for PDC Energy

How Does Total Compensation For Bart Brookman Compare With Other Companies In The Industry?

Our data indicates that PDC Energy, Inc. has a market capitalization of US$1.7b, and total annual CEO compensation was reported as US$7.7m for the year to December 2019. We note that's an increase of 11% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.

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In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$8.4m. So it looks like PDC Energy compensates Bart Brookman in line with the median for the industry. What's more, Bart Brookman holds US$3.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$850k

US$850k

11%

Other

US$6.9m

US$6.1m

89%

Total Compensation

US$7.7m

US$7.0m

100%

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that PDC Energy 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
ceo-compensation

PDC Energy, Inc.'s Growth

PDC Energy, Inc. has reduced its earnings per share by 20% a year over the last three years. Its revenue is down 19% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has PDC Energy, Inc. Been A Good Investment?

With a three year total loss of 58% for the shareholders, PDC Energy, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, PDC Energy, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining earnings growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in PDC Energy we think you should know about.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.