In 2006 Paul Howes was appointed CEO of Newpark Resources, Inc. (NYSE:NR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Paul Howes's Compensation Compare With Similar Sized Companies?
Our data indicates that Newpark Resources, Inc. is worth US$643m, and total annual CEO compensation is US$3.2m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$788k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
That means Paul Howes receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Newpark Resources has changed over time.
Is Newpark Resources, Inc. Growing?
On average over the last three years, Newpark Resources, Inc. has grown earnings per share (EPS) by 122% each year (using a line of best fit). Its revenue is up 14% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Newpark Resources, Inc. Been A Good Investment?
Newpark Resources, Inc. has served shareholders reasonably well, with a total return of 12% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Paul Howes is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if Newpark Resources insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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