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November 29, 2009 6:53 pm

Oil and gas chief executives: are they worth it?

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In little more than the past year, oil prices have touched highs of $147 a barrel and lows of $32 a barrel. Shareholders in Europe have revolted over pay at its two biggest oil companies and US regulators have begun to consider greatly loosening the grip management has over the composition of its boards and thus also over the compensation that they grant their executives.

It is against this backdrop that the FT has launched its ranking of the oil and gas industry’s best value chief executives. The 35 companies include small US natural gas producers, big integrated European and US energy groups, companies with large government stakes, refiners and providers of oil field services and equipment. The ranking is based on one year total shareholder return, return on capital employed and total compensation all for 2008, the most recent complete year for which such data are available.

Because no single metric is perfect, especially in an arena as complex as executive compensation and an industry as diverse as energy, the interactive graphic allows for deeper analysis. Readers can break down compensation packages into their component parts and use further metrics, including three-year TSR and production growth, to judge for themselves the value of the chief executives. In addition, a paragraph of context aims to explain some of the nuances that numbers can not. Compensation data as provided by Equilar.

Select the measures on the x and y axes, and click on the company label to highlight company. Click on the bubble or the “info” button to learn more.

This project was reported by Carola Hoyos and produced by Cynthia O’Murchu. Flash design and production by Steve Bernard and Peter Feeney. Additional reporting by Aura Sabadus. Executive compensation data was provided by Equilar.

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Methodology & Ranking
Comparing pay: A tricky, but worthwhile exercise
CEO compensation

Interactive table: view how the executives rank on a number of measures including total shareholder return, return on capital employed and a composite ranking.

Methodology for analysis and rankings

Glossary: ROCE - ROE - TSR

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