Stock price appreciation is among the factors companies typically link to executive compensation.
Seven of the 11 CEOs received a double-digit percentage increase in option-adjusted compensation in 2013 compared to 2012 in another challenging year for coal markets. The average compensation for the same companies was $4.2 million in 2012.
CONSOL's stock price increased 18.5% from year-end 2012 to year-end 2013, one of just three of coal companies in the analysis to boast an increase, joining Alliance Resource Partners LP and Natural Resource Partners LP.
Coal companies also typically consider the company's adjusted EBITDA, safety record during the year and personal performance of a given executive in setting pay targets.
In 2013, CONSOL Energy chairman and CEO J Brett Harvey remained the highest-paid coal company executive, receiving much of his compensation in the form of restricted stock awards.
Peabody Energy chairman and CEO Gregory Boyce was the second-highest compensated coal executive, receiving nearly $10.8 million in 2013, up 13.7% from the $9.5 million he was paid in 2012.
James River Coal, which filed for bankruptcy protection on April 7, did not file a proxy statement and was not included in the analysis.
Harvey reflected on his tenure April 29 during CONSOL's first-quarter earnings call, which followed an earnings report that soundly beat Wall Street's expectations.
CONSOL, celebrating its 150th anniversary, reported a net income of $116 million in the quarter.
CONSOL's net income grew 69.8% over the same time period. The year saw CONSOL divest five active thermal coal mines in a landmark deal with Murray Energy Corp to focus on the growth of its gas division.
“In April 1999, we went public and our size, in terms of market cap, is about 10 times what it was then,” Harvey said.
“That's good news for our shareholders, especially those who have been with us for a long time, and it's good news going forward because these assets are timeless in terms of demand for energy, and they're red, white and blue energy as well.
“I've been the CEO since that point in time. Now it's time for a change. We have a very strong management team and we're ready to move forward for the next 150 years.”
