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Is Noble Energy, Inc.'s (NASDAQ:NBL) CEO Overpaid Relative To Its Peers?

Simply Wall St

Dave Stover became the CEO of Noble Energy, Inc. (NASDAQ:NBL) in 2014. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Noble Energy

How Does Dave Stover's Compensation Compare With Similar Sized Companies?

Our data indicates that Noble Energy, Inc. is worth US$11b, and total annual CEO compensation was reported as US$11m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. 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 group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

That means Dave Stover receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Noble Energy has changed from year to year.

NasdaqGS:NBL CEO Compensation, January 16th 2020

Is Noble Energy, Inc. Growing?

Over the last three years Noble Energy, Inc. has grown its earnings per share (EPS) by an average of 47% per year (using a line of best fit). In the last year, its revenue is down 6.0%.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.

Has Noble Energy, Inc. Been A Good Investment?

With a three year total loss of 40%, Noble Energy, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Dave Stover is close enough to the median pay for a CEO of a large company .

We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Noble Energy.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.