Shareholders May Be Wary Of Increasing CNX Resources Corporation's (NYSE:CNX) CEO Compensation Package

The results at CNX Resources Corporation (NYSE:CNX) have been quite disappointing recently and CEO Nick DeIuliis bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 06 May 2021. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for CNX Resources

How Does Total Compensation For Nick DeIuliis Compare With Other Companies In The Industry?

According to our data, CNX Resources Corporation has a market capitalization of US$3.1b, and paid its CEO total annual compensation worth US$11m over the year to December 2020. We note that's a decrease of 20% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$800k.

On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$6.6m. Hence, we can conclude that Nick DeIuliis is remunerated higher than the industry median. Furthermore, Nick DeIuliis directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$800k	US$800k	7%
Other	US$10m	US$13m	93%
Total Compensation	US$11m	US$14m	100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. CNX Resources sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at CNX Resources Corporation's Growth Numbers

CNX Resources Corporation has reduced its earnings per share by 120% a year over the last three years. It saw its revenue drop 30% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 CNX Resources Corporation Been A Good Investment?

With a three year total loss of 13% for the shareholders, CNX Resources Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for CNX Resources that investors should think about before committing capital to this stock.

Switching gears from CNX Resources, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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