It's Unlikely That CONSOL Energy Inc.'s (NYSE:CEIX) CEO Will See A Huge Pay Rise This Year

Key Insights

• CONSOL Energy to hold its Annual General Meeting on 30th of April
• Total pay for CEO Jimmy Brock includes US$1.00m salary
• The overall pay is 114% above the industry average
• CONSOL Energy's total shareholder return over the past three years was 813% while its EPS grew by 100% over the past three years

Under the guidance of CEO Jimmy Brock, CONSOL Energy Inc. (NYSE:CEIX) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for CONSOL Energy

How Does Total Compensation For Jimmy Brock Compare With Other Companies In The Industry?

Our data indicates that CONSOL Energy Inc. has a market capitalization of US$2.5b, and total annual CEO compensation was reported as US$13m for the year to December 2023. Notably, that's an increase of 32% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

For comparison, other companies in the American Oil and Gas industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$6.2m. Hence, we can conclude that Jimmy Brock is remunerated higher than the industry median. Furthermore, Jimmy Brock directly owns US$39m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.0m	US$1.0m	8%
Other	US$12m	US$9.0m	92%
Total Compensation	US$13m	US$10.0m	100%

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. In CONSOL 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.

CONSOL Energy Inc.'s Growth

CONSOL Energy Inc. has seen its earnings per share (EPS) increase by 100% a year over the past three years. Its revenue is up 10% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CONSOL Energy Inc. Been A Good Investment?

We think that the total shareholder return of 813%, over three years, would leave most CONSOL 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 decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for CONSOL Energy that you should be aware of before investing.

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.

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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.