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2022/2023


Energy Compensation

Report

Analysis of Compensation Arrangements Among the Largest
U.S. Exploration & Production (E&P) and Oilfield Services (OFS)
Companies, Including Trends In Clean Energy Compensation

Jump To Section
E&P and OFS Total Direct
Compensation for CEOs and CFOs
Energy Industry
Compensation Overview
Clean Energy Snapshots

Introduction


DOWNLOAD REPORT
In recent years, stakeholders, regulators, and advisory groups have continued to advocate for more transparency and change with respect to executive compensation. Alvarez & Marsal’s Compensation and Benefits Practice has partnered with ESGauge and is pleased to provide this latest edition of our study on compensation arrangements among the top E&P, OFS, and Clean Energy companies in the United States.

E&P and OFS Total Direct Compensation for CEOs and CFOs

Click on the graph below to explore historical trends in executive compensation at the largest E&P and OFS companies in the United States.

TIMELINE OF CEO AND CFO TOTAL DIRECT COMPENSATION FROM 2019 TO 2022

  • E&P - CEO
  • OFS - CEO
  • E&P - CFO
  • OFS - CFO
$12,269,645
$13,183,550
$10,336,392
$11,637,892
$7,925,283
$8,856,355
$7,672,603
$9,594,629
$4,715,220
$6,203,993
$3,910,917
$4,620,788
$2,826,978
$3,088,535
$2,790,275
$3,737,870

E&P and OFS
Total Direct
Compensation
for CEOs and CFOs

Click on the graph below to explore historical trends in executive compensation at the largest E&P and OFS companies in the United States.

TIMELINE OF CEO AND CFO TOTAL DIRECT COMPENSATION FROM 2019 TO 2022

CEO
CFO
2019
2020
2021
2022

Energy Industry Compensation Overview

To understand compensation practices in the energy sector, the Compensation and Benefits Practice of Alvarez & Marsal examined the 2022 proxy statements of the largest E&P and OFS companies listed on U.S. based exchanges. Explore some of our key findings below:

Average Base Salary

The average CEO and CFO base salary for OFS companies is lower than average base salary for E&P companies.

AIP & LTI

The most common AIP metric is health, safety and environmental at 100% and 80% for E&P and OFS companies, respectively. The most common LTI metric is relative TSR at 95% and 67% for E&P and OFS companies, respectively.

Average ESG Weightings

In 2022, the average ESG weighting has been 18% and 17% of Annual Incentive Plans for E&P and OFS companies, respectively.

Energy Industry
Compensation Overview

To understand compensation practices in the energy sector, the Compensation and Benefits Practice of Alvarez & Marsal examined the 2022 proxy statements of the largest E&P and OFS companies listed on U.S. based exchanges. Explore some of our key findings below:

Average Base Salary

The average CEO and CFO base salary for OFS companies is lower than average base salary for E&P companies.

AIP & LTI

The most common AIP metric is health, safety and environmental at 100% and 80% for E&P and OFS companies, respectively. The most common LTI metric is relative TSR at 95% and 67% for E&P and OFS companies, respectively.

Average ESG Weightings

In 2022, the average ESG weighting has been 18% and 17% of Annual Incentive Plans for E&P and OFS companies, respectively.

Effective compensation programs are critical to attract, retain, and drive performance of executives. Companies should ensure that their executive compensation programs are aligned with the market throughout each potential phase of a company’s life cycle, including initial public offering (IPO), transaction / merger, steady state, bankruptcy, and recovery upon emergence.


Clean Energy Snapshots

Events across the globe, such as COVID-19, social injustice, and the Russo-Ukrainian War, together with mounting political pressure to address environmental change, have created a monumental shift by companies to reprioritize ESG efforts. This has also placed a spotlight on organizations that focus on renewable and sustainable energy production and distribution. A&M analyzed the executive compensation programs at 10 of the largest Clean Energy companies to assess market trends in this rapidly growing sector. Explore the report’s key findings on Clean Energy companies to the right:

2022 Total Direct Compensation for CEOs

2022 Total Direct Compensation for CFOs

AIP and LTI Metrics

Clean Energy Snapshots

Events across the globe, such as COVID-19, social injustice, and the Russo-Ukrainian War, together with mounting political pressure to address environmental change, have created a monumental shift by companies to reprioritize ESG efforts. This has also placed a spotlight on organizations that focus on renewable and sustainable energy production and distribution. A&M analyzed the executive compensation programs at 10 of the largest Clean Energy companies to assess market trends in this rapidly growing sector.

2022 Total Direct Compensation
for CEOs
2022 Total Direct Compensation
for CFOs
AIP and LTI Metrics

2022 Total Direct Compensation for CEOs

2022 Total Direct Compensation for CFOs

AIP and LTI Metrics

The Compensation and Benefits Practice of Alvarez & Marsal assists companies in designing compensation and benefits plans, evaluating and enhancing existing plans, benchmarking compensation and reviewing programs for compliance with changing laws and regulations. We do so in a manner that manages risks associated with tax, financial and regulatory burdens related to such plans. Through our services, we help companies lower costs, improve performance, boost the bottom line, and attract and retain key performers.

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