Re: Spas--sorry to ruin your day but makes your point too
I agree generically that CEO's get paid WAY WAY too much. Unfortunately if you are
on the Compensation Committee of the Board, you have to compensate your CEO
competitively of risk losing him. Again, the 10's of millions that these guys make
every year is unfathomable. How you address this problem on an industry wide basis
I haven't a clue. But for COP, the Board as a whole must hire, or continue to
employee a CEO, and the Compensation Committee of the Board must recommend a salary
and benefit package that is competitive for that position.
Is the CEO compensation at COP competitive? Yes. I looked this up and Posted my
findings a few weeks ago.
Is the current CEO the right one for COP? Yes. The price of COP stock is doing
well based on the assets that it holds and its earnings potential:
According to Siblis Research, the average Price-To-Book Ratio of a stock in the
Energy sector is 1.67. COP's P/B is 1.80, 8% above industry average. My take on
this is that investors have judged that this management team can get more out of
these assets than the average CEO could.
According to an NYU Database, the average Forward Price-To-Earnings Ratio of a
stock in Oil and Gas Exploration is 11.30. COP's Forward P/E is 15.95, 41% above
industry average. My take on this is that investors have judged that this
management team will beat the earnings estimates and grow the Company more than
the average CEO would.
A Dis Who Has Obviously Been Confused By Numbers