Yahoo Finance How Should Investors Feel About Antero Resources Corporation's (NYSE:AR) CEO Pay?
Paul Rady has been the CEO of Antero Resources Corporation (NYSE:AR) since 2004. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
See our latest analysis for Antero Resources
How Does Paul Rady's Compensation Compare With Similar Sized Companies?
Our data indicates that Antero Resources Corporation is worth US$714m, and total annual CEO compensation was reported as US$8.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$858k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.5m.
It would therefore appear that Antero Resources Corporation pays Paul Rady more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Antero Resources has changed over time.
Is Antero Resources Corporation Growing?
On average over the last three years, Antero Resources Corporation has grown earnings per share (EPS) by 76% each year (using a line of best fit). In the last year, its revenue is up 15%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Antero Resources Corporation Been A Good Investment?
Since shareholders would have lost about 91% over three years, some Antero Resources Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Antero Resources Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Antero Resources.
If you want to buy a stock that is better than Antero Resources, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
