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Is Oil States International, Inc.'s (NYSE:OIS) CEO Overpaid Relative To Its Peers?

Simply Wall St

Cindy Taylor has been the CEO of Oil States International, Inc. (NYSE:OIS) since 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Oil States International

How Does Cindy Taylor's Compensation Compare With Similar Sized Companies?

Our data indicates that Oil States International, Inc. is worth US$877m, and total annual CEO compensation was reported as US$4.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$843k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. 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$2.5m.

As you can see, Cindy Taylor is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Oil States International, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Oil States International, below.

NYSE:OIS CEO Compensation, January 24th 2020

Is Oil States International, Inc. Growing?

Oil States International, Inc. has increased its earnings per share (EPS) by an average of 8.6% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 5.6%.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. 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?

Given the total loss of 64% over three years, many shareholders in Oil States International, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Oil States International, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Oil States International shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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