Yahoo Finance Does Devon Energy Corporation’s (NYSE:DVN) CEO Salary Reflect Performance?
Dave Hager has been the CEO of Devon Energy Corporation (NYSE:DVN) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Devon Energy
How Does Dave Hager’s Compensation Compare With Similar Sized Companies?
Our data indicates that Devon Energy Corporation is worth US$16.8b, and total annual CEO compensation is US$13m. We note that’s an increase of 53% above last year. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.
So Dave Hager receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Devon Energy, below.
Is Devon Energy Corporation Growing?
Devon Energy Corporation has increased its earnings per share (EPS) by an average of 92% a year, over the last three years In the last year, its revenue is up 36%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Devon Energy Corporation Been A Good Investment?
With a three year total loss of 27%, Devon Energy Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Dave Hager is paid around what is normal the leaders of larger companies.
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Devon Energy Corporation shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 editorial-team@simplywallst.com.
