Nick DeIuliis has been the CEO of CNX Resources Corporation (NYSE:CNX) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Nick DeIuliis's Compensation Compare With Similar Sized Companies?
Our data indicates that CNX Resources Corporation is worth US$1.4b, and total annual CEO compensation was reported as US$10m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$800k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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$4.1m.
It would therefore appear that CNX Resources Corporation pays Nick DeIuliis more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at CNX Resources has changed over time.
Is CNX Resources Corporation Growing?
Over the last three years CNX Resources Corporation has grown its earnings per share (EPS) by an average of 82% per year (using a line of best fit). Its revenue is up 25% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has CNX Resources Corporation Been A Good Investment?
Since shareholders would have lost about 53% over three years, some CNX Resources Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount CNX Resources Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if CNX 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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