Updated 09.10.2009

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Summary: An overextended CEO and a lack of disclosure in one of its processes in the Internal Control Environment is a cause for concern.


Although Devon has shown comparatively fewer concerns that some of its competitor companies, our concerns revolve around the Internal Control Environment specifically those connected to press releases of earnings information. An overextended CEO is another concern related to Devon. Though not a serious concern, the social and environment reporting of Devon could use some improvement.


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Are press releases of earning information reviewed by Devon’s Audit Committee Board?

  1. In order to increase accountability as well as reliability, InvesGuard likes to see press releases of earnings information specifically reviewed by the Audit Committee members with the management before these are released to the press or public. In some cases, we have seen companies disclosing in their audit committee reports that this was followed. Unfortunately this does not always happen. Devon is one instance where we noticed that there have been no disclosures that such a review by the Audit Committee was conducted.


Does the CEO appear to be overextended?

  1. CEO Larry Nichols is also on the board of 2 other public company boards. Managing the affairs of one company while providing strategic direction and oversight to a few others can be a herculean task and such executive officers may be easily overextended.


Does the company provide adequate details on its social and environmental impact?

  1. Devon energy needs to present a detailed list of environmental goals for itself and a roadmap outlining how it plans to get there.


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Detailed Scorecard


Board Size: 9 (as per 2008 Proxy Statement filed in March 2009.)

Board of Directors Compensation($): Cash- $50,000; Deferred Stock Award- For 2008, 3,000 stock options and 2,000 shares of restricted stock.

Cumulative CO2 emissions reduction (millions of tons): 2008- 30.24; 2007- 25.29

Total CEO compensation for 2008($): $38.51 million