Joseph Foran has been the CEO of Matador Resources Company (NYSE:MTDR) since 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Joseph Foran's Compensation Compare With Similar Sized Companies?
According to our data, Matador Resources Company has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$7.4m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
Thus we can conclude that Joseph Foran receives more in total compensation than the median of a group of companies in the same market, and of similar size to Matador Resources Company. 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 Matador Resources has changed over time.
Is Matador Resources Company Growing?
Matador Resources Company has increased its earnings per share (EPS) by an average of 101% a year, over the last three years (using a line of best fit). Its revenue is up 20% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Matador Resources Company Been A Good Investment?
Since shareholders would have lost about 33% over three years, some Matador Resources Company 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 Matador Resources Company, 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.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. 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 Matador Resources insiders are buying or selling shares.
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.
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