Key Insights

• Antero Resources' Annual General Meeting to take place on 5th of June
• Salary of US$1.07m is part of CEO Paul Rady's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Antero Resources' EPS grew by 68% and over the past three years, the total shareholder return was 163%

It would be hard to discount the role that CEO Paul Rady has played in delivering the impressive results at Antero Resources Corporation (NYSE:AR) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 5th of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Comparing Antero Resources Corporation's CEO Compensation With The Industry

Our data indicates that Antero Resources Corporation has a market capitalization of US$11b, and total annual CEO compensation was reported as US$14m for the year to December 2023. Notably, that's a decrease of 45% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

In comparison with other companies in the American Oil and Gas industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$15m. This suggests that Antero Resources remunerates its CEO largely in line with the industry average. What's more, Paul Rady holds US$459m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. In Antero Resources' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Antero Resources Corporation's Growth Numbers

Over the past three years, Antero Resources Corporation has seen its earnings per share (EPS) grow by 68% per year. It saw its revenue drop 47% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Antero Resources Corporation Been A Good Investment?

We think that the total shareholder return of 163%, over three years, would leave most Antero Resources Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Antero Resources that investors should think about before committing capital to this stock.

Important note: Antero Resources is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.