Why We Think The CEO Of Cactus, Inc. (NYSE:WHD) May Soon See A Pay Rise

Key Insights

• Cactus will host its Annual General Meeting on 14th of May
• Total pay for CEO Scott Bender includes US$442.3k salary
• Total compensation is 57% below industry average
• Over the past three years, Cactus' EPS grew by 65% and over the past three years, the total shareholder return was 55%

Shareholders will be pleased by the impressive results for Cactus, Inc. (NYSE:WHD) recently and CEO Scott Bender has played a key role. At the upcoming AGM on 14th 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 Cactus

How Does Total Compensation For Scott Bender Compare With Other Companies In The Industry?

Our data indicates that Cactus, Inc. has a market capitalization of US$4.1b, and total annual CEO compensation was reported as US$2.9m for the year to December 2023. That's a slight decrease of 5.9% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$442k.

On comparing similar companies from the American Energy Services industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.7m. That is to say, Scott Bender is paid under the industry median. Moreover, Scott Bender also holds US$4.0m worth of Cactus stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$442k	US$392k	15%
Other	US$2.4m	US$2.7m	85%
Total Compensation	US$2.9m	US$3.1m	100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. There isn't a significant difference between Cactus and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Cactus, Inc.'s Growth

Cactus, Inc. has seen its earnings per share (EPS) increase by 65% a year over the past three years. In the last year, its revenue is up 48%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cactus, Inc. Been A Good Investment?

Boasting a total shareholder return of 55% over three years, Cactus, Inc. has done well by shareholders. 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. 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 can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Cactus that investors should look into moving forward.

Important note: Cactus 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.