Energy Industry Compensation Experts

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Energy Compensation

At Longnecker & Associates, we pride ourselves on being the foremost experts on strategic compensation and governance matters in the energy industry. Our expertise is rooted in our leadership’s experience as board members, corporate employees and consultants at energy companies since the 1980s – over 30 years of valuable insight. The industry has witnessed many commodity cycles over those three decades, and through them we built our reputation as the “go-to” firm for advisory services through best-in-class data and service.

L&A endeavors to assist clients in developing compensation strategies that manage the volatility in the energy market and focus on strategic alignment of pay across all human capital assets – executives, boards of directors and broad-based employees – while linking pay to shareholder performance. Recognizing no two clients have the same identity, it is our goal to ensure we understand a client’s competitive profile and how we can best support the achievement of long-term value creation.

L&A serves a diverse client base, from small, privately held entities to Fortune 500 stalwarts, spreading across upstream, midstream and oilfield services segments. Below is just a small sample of companies L&A has worked with.



  • Compensation Philosophy Development
  • Peer Group Development
  • Executive Compensation Analysis
  • Annual and Long-Term Incentive Plan Design
  • Board of Director Compensation Analysis and Structure
  • All Employee Compensation Analysis and Salary Grade Development
  • Severance Benefit Design
  • Employment Agreement Design
  • Compensation Risk Assessment
  • Merger and Acquisition Integration
  • Investor Relations, Shareholder Engagement Strategy
  • Succession Planning Design
  • Retirement Compensation Design
  • Compensation Discussion & Analysis Drafting, Review
  • Compensation Surveys

Energy Compensation Facts & figures

L&A develops and conducts annual compensation surveys specifically for the upstream and midstream energy segments, as well as the energy industry as a whole. These surveys provide historical, real-time and projected compensation policy, design, and benchmark trends. Below are key takeaways from our latest surveys, conducted in 2019. Be sure to visit our surveys page to learn more about our offerings and future participation opportunities.

UPSTREAM SEGMENT TRENDS

  • The median 2020 projected salary increase budget for all employees is less than 3.00%. However, executive increases will be flat or nominal.
  • The most commonly used annual incentive performance metrics remain production-based, although an increased shareholder interest in G&A is sparking heightened expense awareness, likely resulting in greater G&A usage in 2020 annual incentive plans.
  • 86% of respondents have a discretionary component when evaluating executive annual incentive plan performance.
  • 58% of respondents accelerate vesting of their executives’ equity in the event of a change-in-control with a qualifying termination. Shareholder pressure is creating a trend toward increased double trigger change-in-control equity vesting.

MIDSTREAM SEGMENT TRENDS

  • The median 2020 projected salary increase budget for all employees is 3.0%.
  • The most commonly used annual incentive performance metrics are profit-based followed by safety-based (for executives).
  • 84% of respondents have a discretionary component when evaluating executive annual incentive plan performance, although there is increasing quantitative metric usage in the sector.

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Houston, TX 77070

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Dallas, Texas 75240

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Suite 1115
Glendale, Colorado 80246

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