Yahoo Finance This Is The Reason Why We Think Woodside Energy Group Ltd's (ASX:WDS) CEO Deserves A Bump Up To Their Compensation
Key Insights
Woodside Energy Group's Annual General Meeting to take place on 24th of April
CEO Meg O’Neill's total compensation includes salary of US$1.67m
The overall pay is 44% below the industry average
Woodside Energy Group's total shareholder return over the past three years was 64% while its EPS grew by 65% over the past three years
Shareholders will be pleased by the impressive results for Woodside Energy Group Ltd (ASX:WDS) recently and CEO Meg O’Neill has played a key role. At the upcoming AGM on 24th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
Check out our latest analysis for Woodside Energy Group
How Does Total Compensation For Meg O’Neill Compare With Other Companies In The Industry?
Our data indicates that Woodside Energy Group Ltd has a market capitalization of AU$58b, and total annual CEO compensation was reported as US$4.9m for the year to December 2023. That's a modest increase of 5.4% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.7m.
For comparison, other companies in the Australian Oil and Gas industry with market capitalizations above AU$12b, reported a median total CEO compensation of US$8.7m. That is to say, Meg O’Neill is paid under the industry median. Furthermore, Meg O’Neill directly owns AU$13m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.7m | US$1.7m | 34% |
Other | US$3.2m | US$3.0m | 66% |
Total Compensation | US$4.9m | US$4.7m | 100% |
On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. Woodside Energy Group pays a modest slice of remuneration through salary, as compared 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.
Woodside Energy Group Ltd's Growth
Woodside Energy Group Ltd's earnings per share (EPS) grew 65% per year over the last three years. It saw its revenue drop 17% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Woodside Energy Group Ltd Been A Good Investment?
Boasting a total shareholder return of 64% over three years, Woodside Energy Group Ltd has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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.
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 is a bit concerning) in Woodside Energy Group we think you should know about.
Important note: Woodside Energy Group 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.
