Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Dave Stover has been the CEO of Noble Energy, Inc. (NYSE:NBL) since 1970. First, this article will compare CEO compensation with compensation at 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 Dave Stover's Compensation Compare With Similar Sized Companies?
Our data indicates that Noble Energy, Inc. is worth US$10b, and total annual CEO compensation is US$11m. (This is based on the year to December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$12m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Dave Stover receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Noble Energy has changed from year to year.
Is Noble Energy, Inc. Growing?
Over the last three years Noble Energy, Inc. has grown its earnings per share (EPS) by an average of 76% per year (using a line of best fit). It achieved revenue growth of 6.2% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Noble Energy, Inc. Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Noble Energy, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Dave Stover is paid around what is normal the leaders of larger companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. So you may want to check if insiders are buying Noble Energy shares with their own money (free access).
If you want to buy a stock that is better than Noble Energy, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.