Northern Oil and Gas, Inc.'s (NYSE:NOG) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
- Northern Oil and Gas to hold its Annual General Meeting on 22nd of May
- Total pay for CEO Nick O'Grady includes US$925.0k salary
- Total compensation is similar to the industry average
- Northern Oil and Gas' total shareholder return over the past three years was 20% while its EPS grew by 6.1% over the past three years
Performance at Northern Oil and Gas, Inc. (NYSE:NOG) has been reasonably good and CEO Nick O'Grady has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 22nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Northern Oil and Gas
Comparing Northern Oil and Gas, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Northern Oil and Gas, Inc. has a market capitalization of US$2.9b, and reported total annual CEO compensation of US$8.1m for the year to December 2024. That's a notable decrease of 21% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$925k.
On comparing similar companies from the American Oil and Gas industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.9m. This suggests that Northern Oil and Gas remunerates its CEO largely in line with the industry average. Moreover, Nick O'Grady also holds US$6.6m worth of Northern Oil and Gas stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$925k | US$850k | 11% |
| Other | US$7.1m | US$9.4m | 89% |
| Total Compensation | US$8.1m | US$10m | 100% |
On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that Northern Oil and Gas allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Northern Oil and Gas, Inc.'s Growth
Northern Oil and Gas, Inc.'s earnings per share (EPS) grew 6.1% per year over the last three years. It achieved revenue growth of 13% over the last year.
We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Northern Oil and Gas, Inc. Been A Good Investment?
With a total shareholder return of 20% over three years, Northern Oil and Gas, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Northern Oil and Gas we think you should know about.
Switching gears from Northern Oil and Gas, 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.
Valuation is complex, but we're here to simplify it.
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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.