Shareholders Will Probably Hold Off On Increasing Nine Energy Service, Inc.'s (NYSE:NINE) CEO Compensation For The Time Being
Key Insights
Nine Energy Service's Annual General Meeting to take place on 3rd of May
Total pay for CEO Ann Fox includes US$700.0k salary
Total compensation is 199% above industry average
Over the past three years, Nine Energy Service's EPS grew by 108% and over the past three years, the total shareholder return was 17%
Under the guidance of CEO Ann Fox, Nine Energy Service, Inc. (NYSE:NINE) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Nine Energy Service
Comparing Nine Energy Service, Inc.'s CEO Compensation With The Industry
Our data indicates that Nine Energy Service, Inc. has a market capitalization of US$82m, and total annual CEO compensation was reported as US$3.4m for the year to December 2023. We note that's an increase of 66% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$700k.
In comparison with other companies in the American Energy Services industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.1m. Accordingly, our analysis reveals that Nine Energy Service, Inc. pays Ann Fox north of the industry median. Furthermore, Ann Fox directly owns US$1.2m worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$700k | US$689k | 21% |
Other | US$2.7m | US$1.3m | 79% |
Total Compensation | US$3.4m | US$2.0m | 100% |
On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. According to our research, Nine Energy Service has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Nine Energy Service, Inc.'s Growth
Nine Energy Service, Inc. has seen its earnings per share (EPS) increase by 108% a year over the past three years. In the last year, its revenue is up 2.7%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Nine Energy Service, Inc. Been A Good Investment?
Nine Energy Service, Inc. has served shareholders reasonably well, with a total return of 17% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Nine Energy Service (1 shouldn't be ignored!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
