Bill Thomas became the CEO of EOG Resources, Inc. (NYSE:EOG) in 2013. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bill Thomas’s Compensation Compare With Similar Sized Companies?
According to our data, EOG Resources, Inc. has a market capitalization of US$54b, and pays its CEO total annual compensation worth US$11m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$945k. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
That means Bill Thomas receives fairly typical remuneration for the CEO of a large company. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.
The graphic below shows how CEO compensation at EOG Resources has changed from year to year.
Is EOG Resources, Inc. Growing?
On average over the last three years, EOG Resources, Inc. has grown earnings per share (EPS) by 121% each year (using a line of best fit). Its revenue is up 60% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Has EOG Resources, Inc. Been A Good Investment?
I think that the total shareholder return of 58%, over three years, would leave most EOG Resources, 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.
Remuneration for Bill Thomas is close enough to the median pay for a CEO of a large company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if EOG Resources insiders are buying or selling shares.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.