Here's Why Shareholders Will Not Be Complaining About ONEOK, Inc.'s (NYSE:OKE) CEO Pay Packet

Key Insights

• ONEOK's Annual General Meeting to take place on 21st of May
• CEO Pierce Norton's total compensation includes salary of US$925.0k
• Total compensation is similar to the industry average
• ONEOK's EPS grew by 13% over the past three years while total shareholder return over the past three years was 53%

Our free stock report includes 1 warning sign investors should be aware of before investing in ONEOK. Read for free now.

The performance at ONEOK, Inc. (NYSE:OKE) has been quite strong recently and CEO Pierce Norton has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 21st of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for ONEOK

Comparing ONEOK, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that ONEOK, Inc. has a market capitalization of US$53b, and reported total annual CEO compensation of US$13m for the year to December 2024. We note that's an increase of 39% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$925k.

For comparison, other companies in the American Oil and Gas industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$15m. This suggests that ONEOK remunerates its CEO largely in line with the industry average. Moreover, Pierce Norton also holds US$10m worth of ONEOK stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$925k	US$835k	7%
Other	US$12m	US$8.7m	93%
Total Compensation	US$13m	US$9.5m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. ONEOK sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ONEOK, Inc.'s Growth

ONEOK, Inc. has seen its earnings per share (EPS) increase by 13% a year over the past three years. Its revenue is up 39% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ONEOK, Inc. Been A Good Investment?

Boasting a total shareholder return of 53% over three years, ONEOK, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for ONEOK that investors should be aware of in a dynamic business environment.

Important note: ONEOK is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.