How Much Is Exterran's (NYSE:EXTN) CEO Getting Paid?

Andrew Way has been the CEO of Exterran Corporation (NYSE:EXTN) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Exterran.

Check out our latest analysis for Exterran

Comparing Exterran Corporation's CEO Compensation With the industry

At the time of writing, our data shows that Exterran Corporation has a market capitalization of US$147m, and reported total annual CEO compensation of US$5.6m for the year to December 2019. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$825k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.5m. Accordingly, our analysis reveals that Exterran Corporation pays Andrew Way north of the industry median. What's more, Andrew Way holds US$2.0m worth of shares in the company in their own name.

On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. In Exterran's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Exterran Corporation's Growth Numbers

Over the last three years, Exterran Corporation has shrunk its earnings per share by 106% per year. It achieved revenue growth of 22% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Exterran Corporation Been A Good Investment?

With a three year total loss of 85% for the shareholders, Exterran Corporation would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Exterran Corporation is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. It concerns us that EPS growth for the company is negative, while share price gains did not materialize over the last three years. On the bright side, at lease revenue growth seems to be marching northward. Few would argue that it's wise for the company to pay any more, before returns improve.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Exterran that you should be aware of before investing.

Switching gears from Exterran, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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