Yahoo Finance We Think CNX Resources Corporation's (NYSE:CNX) CEO Compensation Package Needs To Be Put Under A Microscope
CNX Resources Corporation (NYSE:CNX) has not performed well recently and CEO Nick DeIuliis will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 06 May 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for CNX Resources
How Does Total Compensation For Nick DeIuliis Compare With Other Companies In The Industry?
According to our data, CNX Resources Corporation has a market capitalization of US$3.1b, and paid its CEO total annual compensation worth US$11m over the year to December 2020. That's a notable decrease of 20% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$800k.
On comparing similar companies from the same industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.6m. Hence, we can conclude that Nick DeIuliis is remunerated higher than the industry median. Furthermore, Nick DeIuliis directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$800k | US$800k | 7% |
Other | US$10m | US$13m | 93% |
Total Compensation | US$11m | US$14m | 100% |
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. CNX Resources sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
CNX Resources Corporation's Growth
Over the last three years, CNX Resources Corporation has shrunk its earnings per share by 120% per year. Its revenue is down 30% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has CNX Resources Corporation Been A Good Investment?
Since shareholders would have lost about 13% over three years, some CNX Resources Corporation investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for CNX Resources that investors should be aware of in a dynamic business environment.
Important note: CNX Resources is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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