Yahoo Finance We Think Shareholders Will Probably Be Generous With Diamondback Energy, Inc.'s (NASDAQ:FANG) CEO Compensation
Key Insights
Diamondback Energy will host its Annual General Meeting on 6th of June
CEO Travis Stice's total compensation includes salary of US$1.35m
The total compensation is similar to the average for the industry
Over the past three years, Diamondback Energy's EPS grew by 61% and over the past three years, the total shareholder return was 169%
It would be hard to discount the role that CEO Travis Stice has played in delivering the impressive results at Diamondback Energy, Inc. (NASDAQ:FANG) recently. Coming up to the next AGM on 6th of June, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Diamondback Energy
Comparing Diamondback Energy, Inc.'s CEO Compensation With The Industry
According to our data, Diamondback Energy, Inc. has a market capitalization of US$35b, and paid its CEO total annual compensation worth US$18m over the year to December 2023. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.4m.
For comparison, other companies in the American Oil and Gas industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$15m. So it looks like Diamondback Energy compensates Travis Stice in line with the median for the industry. Furthermore, Travis Stice directly owns US$80m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.4m | US$1.3m | 8% |
Other | US$16m | US$16m | 92% |
Total Compensation | US$18m | US$17m | 100% |
On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. In Diamondback Energy's case, non-salary compensation represents a greater slice of total remuneration, 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.
Diamondback Energy, Inc.'s Growth
Over the past three years, Diamondback Energy, Inc. has seen its earnings per share (EPS) grow by 61% per year. Its revenue is down 4.6% over the previous year.
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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Diamondback Energy, Inc. Been A Good Investment?
We think that the total shareholder return of 169%, over three years, would leave most Diamondback Energy, Inc. 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Diamondback Energy that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
