How Should Investors Feel About Oil States International, Inc.'s (NYSE:OIS) CEO Pay?

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Cindy Taylor became the CEO of Oil States International, Inc. (NYSE:OIS) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Oil States International

How Does Cindy Taylor's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Oil States International, Inc. has a market cap of US$1.0b, and is paying total annual CEO compensation of US$4.8m. (This is based on the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$843k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.

As you can see, Cindy Taylor is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Oil States International, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Oil States International, below.

Is Oil States International, Inc. Growing?

Over the last three years Oil States International, Inc. has shrunk its earnings per share by an average of 9.7% per year (measured with a line of best fit). Its revenue is up 40% over last year.

Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Oil States International, Inc. Been A Good Investment?

Given the total loss of 46% over three years, many shareholders in Oil States International, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Oil States International, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Oil States International shares (free trial).

Important note: Oil States International may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.