Vicki Hollub became the CEO of Occidental Petroleum Corporation (NYSE:OXY) in 2016. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Vicki Hollub's Compensation Compare With Similar Sized Companies?
According to our data, Occidental Petroleum Corporation has a market capitalization of US$41b, and paid its CEO total annual compensation worth US$14m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.3m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Vicki Hollub receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Occidental Petroleum has changed over time.
Is Occidental Petroleum Corporation Growing?
Over the last three years Occidental Petroleum Corporation has grown its earnings per share (EPS) by an average of 123% per year (using a line of best fit). It achieved revenue growth of 28% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Occidental Petroleum Corporation Been A Good Investment?
Given the total loss of 24% over three years, many shareholders in Occidental Petroleum Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Vicki Hollub is close enough to the median pay for a CEO of a large company .
We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. So you may want to check if insiders are buying Occidental Petroleum shares with their own money (free access).
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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