Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Cindy Taylor became the CEO of Oil States International, Inc. (NYSE:OIS) in 2007. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Cindy Taylor's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Oil States International, Inc. has a market cap of US$998m, and is paying total annual CEO compensation of US$4.8m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$843k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
It would therefore appear that Oil States International, Inc. pays Cindy Taylor more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Oil States International has changed from year to year.
Is Oil States International, Inc. Growing?
Oil States International, Inc. has reduced its earnings per share by an average of 9.7% a year, over the last three years (measured with a line of best fit). Its revenue is up 40% over last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Oil States International, Inc. Been A Good Investment?
Since shareholders would have lost about 48% over three years, some Oil States International, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Oil States International, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Oil States International shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.