Yahoo Finance Our View On EOG Resources' (NYSE:EOG) CEO Pay
Bill Thomas became the CEO of EOG Resources, Inc. (NYSE:EOG) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for EOG Resources.
View our latest analysis for EOG Resources
Comparing EOG Resources, Inc.'s CEO Compensation With the industry
Our data indicates that EOG Resources, Inc. has a market capitalization of US$21b, and total annual CEO compensation was reported as US$13m for the year to December 2019. That's a modest increase of 5.8% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$13m. From this we gather that Bill Thomas is paid around the median for CEOs in the industry. What's more, Bill Thomas holds US$26m 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$1.0m | US$1.0m | 8% |
Other | US$12m | US$11m | 92% |
Total Compensation | US$13m | US$12m | 100% |
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. EOG Resources 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.
EOG Resources, Inc.'s Growth
EOG Resources, Inc. has seen its earnings per share (EPS) increase by 10% a year over the past three years. It saw its revenue drop 25% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has EOG Resources, Inc. Been A Good Investment?
With a three year total loss of 61% for the shareholders, EOG Resources, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, EOG Resources pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. Overall, we wouldn't say Bill is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for EOG Resources that investors should think about before committing capital to this stock.
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.
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