In 2014 Rick Muncrief was appointed CEO of WPX Energy, Inc. (NYSE:WPX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Rick Muncrief’s Compensation Compare With Similar Sized Companies?
According to our data, WPX Energy, Inc. has a market capitalization of US$5.1b, and pays its CEO total annual compensation worth US$9.1m. (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$861k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$7.0m.
That means Rick Muncrief receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at WPX Energy, below.
Is WPX Energy, Inc. Growing?
On average over the last three years, WPX Energy, Inc. has shrunk earnings per share by 22% each year. Its revenue is up 153% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has WPX Energy, Inc. Been A Good Investment?
Most shareholders would probably be pleased with WPX Energy, Inc. for providing a total return of 185% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Rick Muncrief is paid around the same as most CEOs of similar size companies.
The company isn’t showing particularly great growth, but shareholder returns have been pleasing. So all things considered I’d venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling WPX Energy (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.