Why We Think The CEO Of SandRidge Energy, Inc. (NYSE:SD) May Soon See A Pay Rise

Key Insights

• SandRidge Energy will host its Annual General Meeting on 12th of June
• Salary of US$343.3k is part of CEO Grayson Pranin's total remuneration
• Total compensation is 49% below industry average
• Over the past three years, SandRidge Energy's EPS grew by 45% and over the past three years, the total shareholder return was 172%

The impressive results at SandRidge Energy, Inc. (NYSE:SD) recently will be great news for shareholders. At the upcoming AGM on 12th of June, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for SandRidge Energy

How Does Total Compensation For Grayson Pranin Compare With Other Companies In The Industry?

At the time of writing, our data shows that SandRidge Energy, Inc. has a market capitalization of US$485m, and reported total annual CEO compensation of US$999k for the year to December 2023. We note that's an increase of 39% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$343k.

On examining similar-sized companies in the American Oil and Gas industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$2.0m. This suggests that Grayson Pranin is paid below the industry median. What's more, Grayson Pranin holds US$1.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$343k	US$325k	34%
Other	US$656k	US$395k	66%
Total Compensation	US$999k	US$720k	100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. It's interesting to note that SandRidge Energy pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at SandRidge Energy, Inc.'s Growth Numbers

SandRidge Energy, Inc. has seen its earnings per share (EPS) increase by 45% a year over the past three years. In the last year, its revenue is down 43%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has SandRidge Energy, Inc. Been A Good Investment?

We think that the total shareholder return of 172%, over three years, would leave most SandRidge Energy, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for SandRidge Energy that investors should be aware of in a dynamic business environment.

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.