Does PDC Energy, Inc.’s (NASDAQ:PDCE) CEO Salary Reflect Performance?

In 2015 Bart Brookman was appointed CEO of PDC Energy, Inc. (NASDAQ:PDCE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for PDC Energy

How Does Bart Brookman’s Compensation Compare With Similar Sized Companies?

According to our data, PDC Energy, Inc. has a market capitalization of US$2.4b, and pays its CEO total annual compensation worth US$5.8m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$825k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.7m.

That means Bart Brookman receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at PDC Energy, below.

NasdaqGS:PDCE CEO Compensation, February 27th 2019
NasdaqGS:PDCE CEO Compensation, February 27th 2019

Is PDC Energy, Inc. Growing?

On average over the last three years, PDC Energy, Inc. has shrunk earnings per share by 9.8% each year (measured with a line of best fit). In the last year, its revenue is up 64%.

Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch. 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 29%, PDC Energy, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Remuneration for Bart Brookman is close enough to the median pay for a CEO of a similar sized company .

The per share growth could be better, in our view. And it’s hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling PDC Energy (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.