Some of the highest-paid CEOs at the big names in U.S. fossil fuel production, refining and transportation saw their compensation increase in 2021 as the oil and natural gas sector bounced back from the upheaval of the COVID-19 pandemic.
The head of oilfield services company Noble Corp. ranked first on a list of the 10 top-earning CEOs in the oil and gas industry in 2021, according to S&P Global Market Intelligence data. Robert Eifler earned $25.3 million over 2021.
Market Intelligence analyzed total adjusted compensation, which includes cash, stocks, options and nonequity incentive components for the period, during which the S&P 500 Energy sector index increased more than 54%.
Stock awards
Eifler's compensation primarily reflected stock awards. The offshore driller has recovered from a sharp decline in its share price from the time that an offshore market downturn began in 2014 through July 2020, when Noble was forced into bankruptcy like several industry peers. Noble emerged from bankruptcy in February 2021, and ordinary shares began trading again in June of that year. In 2021, Noble also acquired Pacific Drilling Co. LLC, and in November 2021 it announced plans to merge with Danish company The Drilling Co. of 1972 A/S, formerly known as Maersk Drilling.
Eifler assumed the CEO role in May 2020. The Noble chief topped the list of the 10 CEOs who saw the greatest change in stock and options from 2020 to 2021 in terms of dollar value, followed by the CEOs of drilling services company Valaris Ltd. and independent producer Chord Energy Corp.
Top executives at many exploration and production companies had elected to reduce annual cash compensation as a commodity price crisis took shape during the pandemic, while others took action on bonus payouts and long-term incentive awards, such as stock options.
Other top-paid CEOs
Oilfield services giant Halliburton Co.'s Jeff Miller was the second-highest paid CEO in 2021. Miller saw his compensation rise nearly 6% to $23.3 million. Halliburton, which reported the highest CEO-to-median employee pay ratio in the oil and gas sector in 2020, was among the international oilfield services companies that saw their financial performance improve from the pandemic doldrums as a result of cost-cutting and international exposure.
The third-highest paid CEO in 2021 was Jack Hightower of HighPeak Energy Inc., an independent producer that went public in 2020 through a reverse merger with Pure Acquisition Corp.
Select Energy Services Inc. CEO John Schmitz had the largest percentage increase in 2021 compensation for an oil and gas industry CEO, but Schmitz assumed the top post at the company in January 2021. Schmitz's 2021 total adjusted pay package was $7.8 million.
Among the CEOs who had held their post prior to 2021, Matthew Schatzman of NextDecade Corp. saw the largest percentage increase during the year. NextDecade is one of the U.S. developers of liquefied natural gas export terminals that have benefited over the past several months from a wave of contracting activity tied to U.S. LNG supplies amid surging global demand.
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