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Is PDC Energy, Inc.'s (NASDAQ:PDCE) CEO Pay Justified?

Bart Brookman has been the CEO of PDC Energy, Inc. (NASDAQ:PDCE) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

See our latest analysis for PDC Energy

How Does Bart Brookman's Compensation Compare With Similar Sized Companies?

Our data indicates that PDC Energy, Inc. is worth US$1.4b, and total annual CEO compensation was reported as US$7.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$850k. 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 selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.0m.

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As you can see, Bart Brookman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PDC Energy, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at PDC Energy has changed over time.

NasdaqGS:PDCE CEO Compensation, November 5th 2019
NasdaqGS:PDCE CEO Compensation, November 5th 2019

Is PDC Energy, Inc. Growing?

On average over the last three years, PDC Energy, Inc. has grown earnings per share (EPS) by 52% each year (using a line of best fit). It achieved revenue growth of 25% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has PDC Energy, Inc. Been A Good Investment?

With a three year total loss of 64%, PDC Energy, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount PDC Energy, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PDC Energy.

If you want to buy a stock that is better than PDC Energy, this free list of high return, low debt companies is a great place to look.

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 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. Thank you for reading.