This Is The Reason Why We Think Solaris Energy Infrastructure, Inc.'s (NYSE:SEI) CEO Deserves A Bump Up To Their Compensation

Key Insights

• Solaris Energy Infrastructure's Annual General Meeting to take place on 15th of May
• Total pay for CEO Bill Zartler includes US$321.0k salary
• The total compensation is 38% less than the average for the industry
• Over the past three years, Solaris Energy Infrastructure's EPS grew by 55% and over the past three years, the total shareholder return was 114%

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The impressive results at Solaris Energy Infrastructure, Inc. (NYSE:SEI) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 15th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Solaris Energy Infrastructure

Comparing Solaris Energy Infrastructure, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Solaris Energy Infrastructure, Inc. has a market capitalization of US$1.5b, and reported total annual CEO compensation of US$3.8m for the year to December 2024. Notably, that's an increase of 53% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$321k.

For comparison, other companies in the American Energy Services industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$6.1m. In other words, Solaris Energy Infrastructure pays its CEO lower than the industry median. What's more, Bill Zartler holds US$22m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. In Solaris Energy Infrastructure's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Solaris Energy Infrastructure, Inc.'s Growth

Over the past three years, Solaris Energy Infrastructure, Inc. has seen its earnings per share (EPS) grow by 55% per year. It achieved revenue growth of 34% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Solaris Energy Infrastructure, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Solaris Energy Infrastructure, Inc. for providing a total return of 114% over three years. 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.

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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 6 warning signs (and 4 which make us uncomfortable) in Solaris Energy Infrastructure we think you should know about.

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.