Clay Williams became the CEO of National Oilwell Varco Inc (NYSE:NOV) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Clay Williams’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that National Oilwell Varco Inc has a market cap of US$12b, and is paying total annual CEO compensation of US$13m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$800k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.
So Clay Williams receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at National Oilwell Varco, below.
Is National Oilwell Varco Inc Growing?
Over the last three years National Oilwell Varco Inc has grown its earnings per share (EPS) by an average of 15% per year. It achieved revenue growth of 14% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has National Oilwell Varco Inc Been A Good Investment?
Given the total loss of 9.5% over three years, many shareholders in National Oilwell Varco Inc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Clay Williams is paid around the same as most CEOs of large companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. Shareholders may want to check for free if National Oilwell Varco insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.