• 21 hours Electric Vehicle Rebound Bolsters Battery Metal Growth
  • 2 days BlackRock Makes A Run On Asian Stocks
  • 2 days Gold Prices Surge Above $1,800
  • 3 days Chinese Stocks Soar On Bullish Economic Data
  • 3 days Apple’s “Holy Grail Of Data” Leaves Energy Traders Disappointed
  • 3 days Gold Rally Adds $250 Billion To Top 50 Miners' Market Cap
  • 4 days TikTok Is Becoming A New Battleground For Tech Politics
  • 4 days Peru's Mining Industry Pummeled As Coronavirus Cases Surge
  • 4 days Why The World Is So Divided In Its COVID-19 Response
  • 5 days Equities Cheer Stellar Jobs Report, But It May Be Fleeting
  • 6 days Is Tech Billionaire Peter Thiel Done With Trump?
  • 6 days Musk Takes To Twitter To Troll The SEC
  • 7 days Lunar Mining May Commence As Early As 2025
  • 8 days Immigration Will Go Bust Without $1.2B Bailout
  • 8 days The Economics Of The Space Race
  • 9 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 10 days How Much More Cash Can Uber Burn?
  • 10 days Inside The Biggest Counterfeit Gold Scandal In Recent History
  • 10 days EU-U.S. Trade Relations Are Deteriorating
  • 11 days Over 184 Companies Have Bailed On Facebook
Billions Lost On These Trading Blunders

Billions Lost On These Trading Blunders

Last week’s viral story about…

What Will Drive The M&A Market In 2020?

What Will Drive The M&A Market In 2020?

LVMH purchasing Tiffany and TechnipFMC…

Another Goldman Banker Charged For Insider Trading

Another Goldman Banker Charged For Insider Trading

Six defendants face multiple counts…

Michael Kern

Michael Kern

Safehaven

Michael Kern is a newswriter and editor at Safehaven.com, Oilprice.com, and a writer at Macro-Investing.com.

Contact Author

  1. Home
  2. Investing
  3. Other

Energy CEOs See Big Payouts Despite Oil Price Crash

Energy CEOs

The coronavirus pandemic has shaken Big Oil to its core. Many companies have lost over a quarter of their value since the crisis began, and with little hope for recovery in the near term, their share prices are unlikely to bounce bank anytime soon. Despite the market madness, however, energy CEOs are still eyeing massive paydays.
Low returns and a general pushback against fossil fuels has left many major investors with little choice but to bail on Big Oil. And now as this global crisis wreaks havoc on financial markets worldwide, things are beginning to look even worse for investors that have held on.

Dividends are being cut, production is falling and the price of oil itself looks like it will be sitting in the $30 range for longer than anyone hoped - or expected.

Despite the doom and gloom, however, the executives of these entrenched energy giants are still living large, collecting massive checks for their lousy performance. 

Take Chesapeake for example. The U.S. shale behemoth saw the price of its stock fall from $852 per share to just $13.81 per share. And now it is currently struggling to deal with its some-$9 billion in debt. Chesapeake even announced that it is considering Chapter 11 bankruptcy. But just before their announcement, the company paid out $25 million in bonuses to 21 employees.

Related: What Do India's Latest Reforms Mean For Its Coal Industry?

Devon Energy is another U.S. oil and gas producer that has managed to hand out a $1.3 million stock bonus to its CEO, while shareholders lost 40 percent of their investments.

But this trend may not last.

Investors are starting to push back, demanding that compensation for executives be capped when the company posts negative returns. 

Shawn Reynolds, a natural resources portfolio manager at asset manager VanEck noted, “Executive compensation has to reflect the experience of the long-term shareholder,” adding “You can’t expect to lose 20 percent of your stock price and get paid just because the industry loses 30 percent.”

By Michael Kern

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment