Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2013 Bill Thomas was appointed CEO of EOG Resources, Inc. (NYSE:EOG). This analysis aims first to contrast CEO compensation with 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Bill Thomas's Compensation Compare With Similar Sized Companies?
Our data indicates that EOG Resources, Inc. is worth US$56b, and total annual CEO compensation is US$12m. (This figure is for the year to December 2018). That's a notable increase of 14% on 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$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Bill Thomas is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at EOG Resources has changed from year to year.
Is EOG Resources, Inc. Growing?
Over the last three years EOG Resources, Inc. has grown its earnings per share (EPS) by an average of 123% per year (using a line of best fit). It achieved revenue growth of 53% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has EOG Resources, Inc. Been A Good Investment?
EOG Resources, Inc. has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Bill Thomas is paid around the same as most CEOs of large companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at EOG Resources.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 email@example.com. 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.