Key Insights

• Exxon Mobil's Annual General Meeting to take place on 29th of May
• Salary of US$1.88m is part of CEO Darren Woods's total remuneration
• Total compensation is 154% above industry average
• Exxon Mobil's total shareholder return over the past three years was 121% while its EPS grew by 59% over the past three years

Performance at Exxon Mobil Corporation (NYSE:XOM) has been reasonably good and CEO Darren Woods has done a decent job of steering the company in the right direction. 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 29th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Comparing Exxon Mobil Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Exxon Mobil Corporation has a market capitalization of US$465b, and reported total annual CEO compensation of US$37m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.9m.

On comparing similar companies in the American Oil and Gas industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$15m. Accordingly, our analysis reveals that Exxon Mobil Corporation pays Darren Woods north of the industry median. Furthermore, Darren Woods directly owns US$30m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. It's interesting to note that Exxon Mobil 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 Exxon Mobil Corporation's Growth Numbers

Exxon Mobil Corporation's earnings per share (EPS) grew 59% per year over the last three years. It saw its revenue drop 16% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Exxon Mobil Corporation Been A Good Investment?

We think that the total shareholder return of 121%, over three years, would leave most Exxon Mobil Corporation shareholders smiling. 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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 1 warning sign for Exxon Mobil that you should be aware of before investing.

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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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.