Key Insights

• Antero Midstream's Annual General Meeting to take place on 5th of June
• Salary of US$364.7k is part of CEO Paul Rady's total remuneration
• The total compensation is 42% higher than the average for the industry
• Antero Midstream's total shareholder return over the past three years was 83% while its EPS grew by 2.9% over the past three years

CEO Paul Rady has done a decent job of delivering relatively good performance at Antero Midstream Corporation (NYSE:AM) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 5th of June. However, some shareholders may still want to keep CEO compensation within reason.

Comparing Antero Midstream Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Antero Midstream Corporation has a market capitalization of US$7.0b, and reported total annual CEO compensation of US$11m for the year to December 2023. That's just a smallish increase of 7.4% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$365k.

On examining similar-sized companies in the American Oil and Gas industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$8.0m. Hence, we can conclude that Paul Rady is remunerated higher than the industry median. Furthermore, Paul Rady directly owns US$19m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Antero Midstream paid Paul Rady a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Antero Midstream Corporation's Growth Numbers

Over the past three years, Antero Midstream Corporation has seen its earnings per share (EPS) grow by 2.9% per year. It achieved revenue growth of 9.7% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Antero Midstream Corporation Been A Good Investment?

Most shareholders would probably be pleased with Antero Midstream Corporation for providing a total return of 83% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Antero Midstream primarily uses non-salary benefits to reward its CEO. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Antero Midstream (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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.