Key Insights

• ConocoPhillips' Annual General Meeting to take place on 14th of May
• Total pay for CEO Ryan Lance includes US$1.74m salary
• The total compensation is 43% higher than the average for the industry
• ConocoPhillips' total shareholder return over the past three years was 149% while its EPS grew by 699% over the past three years

Under the guidance of CEO Ryan Lance, ConocoPhillips (NYSE:COP) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Comparing ConocoPhillips' CEO Compensation With The Industry

At the time of writing, our data shows that ConocoPhillips has a market capitalization of US$144b, and reported total annual CEO compensation of US$21m for the year to December 2023. That's a modest increase of 4.0% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.7m.

In comparison with other companies in the American Oil and Gas industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$15m. This suggests that Ryan Lance is paid more than the median for the industry. Moreover, Ryan Lance also holds US$13m worth of ConocoPhillips stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that ConocoPhillips allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at ConocoPhillips' Growth Numbers

Over the past three years, ConocoPhillips has seen its earnings per share (EPS) grow by 699% per year. Its revenue is down 27% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ConocoPhillips Been A Good Investment?

Most shareholders would probably be pleased with ConocoPhillips for providing a total return of 149% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 2 warning signs for ConocoPhillips that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.