【tales of terra linda pet resort】Is Concho Resources Inc. (NYSE:CXO) Excessively Paying Its CEO?

Tim Leach has been the CEO of Concho Resources Inc. (

NYSE:CXO

) since 2006. This tales of terra linda pet resortanalysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Concho Resources

How Does Tim Leach’s Compensation Compare With Similar Sized Companies?

According to our data, Concho Resources Inc. has a market capitalization of US$20b, and pays its CEO total annual compensation worth US$12m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.1m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO 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 Tim Leach 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.

The graphic below shows how CEO compensation at Concho Resources has changed from year to year.

NYSE:CXO CEO Compensation January 2nd 19

Is Concho Resources Inc. Growing?

On average over the last three years, Concho Resources Inc. has grown earnings per share (EPS) by 79% each year. In the last year, its revenue is up 66%.

This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.

It could be important to check

this free visual depiction of

what analysts expect

for the future

.

Has Concho Resources Inc. Been A Good Investment?

Concho Resources Inc. has generated a total shareholder return of 9.6% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

Tim Leach is paid around what is normal the leaders of larger companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to

check for free if Concho Resources insiders are buying or selling shares.

Story continues

Of course,

the past can be informative

so you might be interested in considering

this

analytical visualization

showing the company history of earnings and revenue

.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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