Select Water Solutions, Inc.'s (NYSE:WTTR) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Select Water Solutions will host its Annual General Meeting on 2nd of May
• CEO John Schmitz's total compensation includes salary of US$800.0k
• Total compensation is similar to the industry average
• Select Water Solutions' total shareholder return over the past three years was 17% while its EPS grew by 48% over the past three years

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CEO John Schmitz has done a decent job of delivering relatively good performance at Select Water Solutions, Inc. (NYSE:WTTR) recently. As shareholders go into the upcoming AGM on 2nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Select Water Solutions

How Does Total Compensation For John Schmitz Compare With Other Companies In The Industry?

Our data indicates that Select Water Solutions, Inc. has a market capitalization of US$1.0b, and total annual CEO compensation was reported as US$4.9m for the year to December 2024. We note that's an increase of 12% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$800k.

In comparison with other companies in the American Energy Services industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$5.6m. From this we gather that John Schmitz is paid around the median for CEOs in the industry. Furthermore, John Schmitz directly owns US$35m worth of shares in the company, implying that they are deeply invested in the company's success.

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 Select Water Solutions pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Select Water Solutions, Inc.'s Growth

Select Water Solutions, Inc.'s earnings per share (EPS) grew 48% per year over the last three years. It saw its revenue drop 8.4% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Select Water Solutions, Inc. Been A Good Investment?

Select Water Solutions, Inc. has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Select Water Solutions that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.