Why Shale Drillers Are Pumping Out Dividends Instead of More Oil and Gas

"Compensation plans that once paid executives to boost output without regard to energy prices now foster cost cuts and shareholder returns" (WSJ, May 2022). Perhaps the new plan does a better job aligning the interests of executives and owners. "After years of losses, investors demanded changes to how bonuses are formulated, pushing for more emphasis on profitability. Now, executives who were paid to pump are rewarded more for keeping costs down and returning cash to shareholders, securities filings show."