(Bloomberg) — Top oil and natural gas executives are making more money this year even as the industry wallows in red ink.
The average total compensation for chief executive officers in the exploration and production industry has increased by 7% to $6.8 million in 2020, mostly due to the predominance of long-term incentives, according to a survey by management-consulting firm Alvarez & Marsal. Finance chiefs saw a more modest 2% increase that elevated the average payout to $3.3 million.
The increase is striking because the industry has been hammered by a devastating demand slump stemming from the pandemic, as well as a global glut that cratered prices. The sector has slumped 54% this year, compared with a 5.2% gain in the broader stock market.
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Oil bosses get most of their compensation in the form of long-term incentives such as restricted shares, which are typically tied to various performance metrics, according to Alvarez & Marsal’s survey of oil and gas exploration companies.
(Corrects spelling of firm’s name in final paragraph)
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