Key Insights

• Coterra Energy's Annual General Meeting to take place on 1st of May
• CEO Tom Jorden's total compensation includes salary of US$1.13m
• The overall pay is comparable to the industry average
• Coterra Energy's total shareholder return over the past three years was 102% while its EPS grew by 62% over the past three years

It would be hard to discount the role that CEO Tom Jorden has played in delivering the impressive results at Coterra Energy Inc. (NYSE:CTRA) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 1st of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

How Does Total Compensation For Tom Jorden Compare With Other Companies In The Industry?

At the time of writing, our data shows that Coterra Energy Inc. has a market capitalization of US$21b, and reported total annual CEO compensation of US$15m for the year to December 2023. That's slightly lower by 4.9% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

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 Coterra Energy remunerates its CEO largely in line with the industry average. Moreover, Tom Jorden also holds US$55m worth of Coterra Energy 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 13% of total compensation represents salary and 87% is other remuneration. Coterra Energy pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Coterra Energy Inc.'s Growth

Coterra Energy Inc. has seen its earnings per share (EPS) increase by 62% a year over the past three years. Its revenue is down 40% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Coterra Energy Inc. Been A Good Investment?

We think that the total shareholder return of 102%, over three years, would leave most Coterra Energy Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Coterra Energy that you should be aware of before investing.

Switching gears from Coterra Energy, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.