It Looks Like The CEO Of Newpark Resources, Inc. (NYSE:NR) May Be Underpaid Compared To Peers

Key Insights

• Newpark Resources will host its Annual General Meeting on 16th of May
• Total pay for CEO Matthew Lanigan includes US$725.0k salary
• Total compensation is 42% below industry average
• Newpark Resources' total shareholder return over the past three years was 138% while its EPS grew by 94% over the past three years

The solid performance at Newpark Resources, Inc. (NYSE:NR) has been impressive and shareholders will probably be pleased to know that CEO Matthew Lanigan has delivered. At the upcoming AGM on 16th of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Newpark Resources

How Does Total Compensation For Matthew Lanigan Compare With Other Companies In The Industry?

According to our data, Newpark Resources, Inc. has a market capitalization of US$626m, and paid its CEO total annual compensation worth US$3.0m over the year to December 2023. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$725k.

For comparison, other companies in the American Energy Services industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$5.1m. This suggests that Matthew Lanigan is paid below the industry median. Furthermore, Matthew Lanigan directly owns US$3.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$725k	US$679k	24%
Other	US$2.3m	US$2.4m	76%
Total Compensation	US$3.0m	US$3.0m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Newpark Resources is paying a higher share of its remuneration through a salary in comparison to the overall 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 Newpark Resources, Inc.'s Growth Numbers

Over the past three years, Newpark Resources, Inc. has seen its earnings per share (EPS) grow by 94% per year. In the last year, its revenue is down 14%.

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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Newpark Resources, Inc. Been A Good Investment?

We think that the total shareholder return of 138%, over three years, would leave most Newpark Resources, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

So you may want to check if insiders are buying Newpark Resources shares with their own money (free access).

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.