Harold Hamm has been the CEO of Continental Resources Inc (NYSE:CLR) since 1967. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Harold Hamm’s Compensation Compare With Similar Sized Companies?
Our data indicates that Continental Resources Inc is worth US$19.9b, and total annual CEO compensation is US$12m. Notably, that’s an increase of 38% over the year before. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.
That means Harold Hamm receives fairly typical remuneration for the CEO of a large company. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Continental Resources has changed over time.
Is Continental Resources Inc Growing?
Over the last three years Continental Resources Inc has grown its earnings per share (EPS) by an average of 77% per year. Its revenue is up 69% over last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Continental Resources Inc Been A Good Investment?
I think that the total shareholder return of 60%, over three years, would leave most Continental Resources Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Remuneration for Harold Hamm is close enough to the median pay for a CEO of a large company .
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Continental Resources Inc shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 firstname.lastname@example.org.