Increases to CEO Compensation Might Be Put On Hold For Now at Cheniere Energy, Inc. (NYSE:LNG)

Key Insights

• Cheniere Energy to hold its Annual General Meeting on 15th of May
• Salary of US$1.68m is part of CEO Jack Fusco's total remuneration
• The total compensation is 66% higher than the average for the industry
• Cheniere Energy's EPS grew by 61% over the past three years while total shareholder return over the past three years was 85%

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Performance at Cheniere Energy, Inc. (NYSE:LNG) has been reasonably good and CEO Jack Fusco has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of May. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Cheniere Energy

How Does Total Compensation For Jack Fusco Compare With Other Companies In The Industry?

Our data indicates that Cheniere Energy, Inc. has a market capitalization of US$52b, and total annual CEO compensation was reported as US$24m for the year to December 2024. Notably, that's an increase of 12% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.7m.

For comparison, other companies in the American Oil and Gas industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$15m. Hence, we can conclude that Jack Fusco is remunerated higher than the industry median. What's more, Jack Fusco holds US$173m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Cheniere Energy sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Cheniere Energy, Inc.'s Growth

Cheniere Energy, Inc.'s earnings per share (EPS) grew 61% per year over the last three years. Its revenue is down 22% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Cheniere Energy, Inc. Been A Good Investment?

Boasting a total shareholder return of 85% over three years, Cheniere Energy, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 Cheniere Energy that you should be aware of before investing.

Important note: Cheniere Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.