Yahoo Finance We Take A Look At Whether Newpark Resources, Inc.'s (NYSE:NR) CEO May Be Underpaid
Key Insights
Newpark Resources will host its Annual General Meeting on 16th of May
Total pay for CEO Matthew Lanigan includes US$725.0k salary
The overall pay is 42% below the industry average
Newpark Resources' total shareholder return over the past three years was 138% while its EPS grew by 94% over the past three years
The solid performance at Newpark Resources, Inc. (NYSE:NR) has been impressive and shareholders will probably be pleased to know that CEO Matthew Lanigan has delivered. This would be kept in mind at the upcoming AGM on 16th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
View our latest analysis for Newpark Resources
Comparing Newpark Resources, Inc.'s CEO Compensation With The Industry
Our data indicates that Newpark Resources, Inc. has a market capitalization of US$626m, and total annual CEO compensation was reported as US$3.0m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$725k.
For comparison, other companies in the American Energy Services industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$5.1m. This suggests that Matthew Lanigan is paid below the industry median. Furthermore, Matthew Lanigan directly owns US$3.4m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$725k | US$679k | 24% |
Other | US$2.3m | US$2.4m | 76% |
Total Compensation | US$3.0m | US$3.0m | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Newpark Resources is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Newpark Resources, Inc.'s Growth Numbers
Newpark Resources, Inc.'s earnings per share (EPS) grew 94% per year over the last three years. It saw its revenue drop 14% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Newpark Resources, Inc. Been A Good Investment?
We think that the total shareholder return of 138%, over three years, would leave most Newpark Resources, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Newpark Resources (free visualization of insider trades).
Switching gears from Newpark Resources, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
