Key Insights

• Newpark Resources to hold its Annual General Meeting on 16th of May
• Salary of US$725.0k is part of CEO Matthew Lanigan's total remuneration
• Total compensation is 42% below industry average
• Newpark Resources' total shareholder return over the past three years was 138% while its EPS grew by 94% over the past three years

The solid performance at Newpark Resources, Inc. (NYSE:NR) has been impressive and shareholders will probably be pleased to know that CEO Matthew Lanigan has delivered. At the upcoming AGM on 16th 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. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

How Does Total Compensation For Matthew Lanigan Compare With Other Companies In The Industry?

According to our data, Newpark Resources, Inc. has a market capitalization of US$626m, and paid its CEO total annual compensation worth US$3.0m over the year to December 2023. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$725k.

On examining similar-sized companies in the American Energy Services industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$5.1m. This suggests that Matthew Lanigan is paid below the industry median. Furthermore, Matthew Lanigan directly owns US$3.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. According to our research, Newpark Resources has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Newpark Resources, Inc.'s Growth Numbers

Newpark Resources, Inc.'s earnings per share (EPS) grew 94% per year over the last three years. It saw its revenue drop 14% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Newpark Resources, Inc. Been A Good Investment?

We think that the total shareholder return of 138%, over three years, would leave most Newpark Resources, Inc. shareholders smiling. 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.

In Summary...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

Shareholders may want to check for free if Newpark Resources insiders are buying or selling shares.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.