Tommy Nusz has been the CEO of Oasis Petroleum Inc. (NYSE:OAS) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tommy Nusz's Compensation Compare With Similar Sized Companies?
According to our data, Oasis Petroleum Inc. has a market capitalization of US$752m, and paid its CEO total annual compensation worth US$7.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$820k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.6m.
Thus we can conclude that Tommy Nusz receives more in total compensation than the median of a group of companies in the same market, and of similar size to Oasis Petroleum Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Oasis Petroleum has changed over time.
Is Oasis Petroleum Inc. Growing?
Oasis Petroleum Inc. has increased its earnings per share (EPS) by an average of 72% a year, over the last three years (using a line of best fit). Its revenue is up 1.5% over 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Oasis Petroleum Inc. Been A Good Investment?
Since shareholders would have lost about 84% over three years, some Oasis Petroleum Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Oasis Petroleum Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Oasis Petroleum insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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