In 2005 Steve Taylor was appointed CEO of Natural Gas Services Group Inc (NYSE:NGS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Steve Taylor’s Compensation Compare With Similar Sized Companies?
According to our data, Natural Gas Services Group Inc has a market capitalization of US$265m, and pays its CEO total annual compensation worth US$2.8m. (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$574k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$927k.
It would therefore appear that Natural Gas Services Group Inc pays Steve 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.
You can see a visual representation of the CEO compensation at Natural Gas Services Group, below.
Is Natural Gas Services Group Inc Growing?
On average over the last three years, Natural Gas Services Group Inc has grown earnings per share (EPS) by 30% each year. Its revenue is down -2.6% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Natural Gas Services Group Inc Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Natural Gas Services Group 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 Natural Gas Services Group Inc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Natural Gas Services Group (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 firstname.lastname@example.org.