Yahoo Finance Shareholders Will Likely Find Mammoth Energy Services, Inc.'s (NASDAQ:TUSK) CEO Compensation Acceptable
Key Insights
Mammoth Energy Services will host its Annual General Meeting on 12th of June
CEO Arty Straehla's total compensation includes salary of US$700.0k
The total compensation is 51% less than the average for the industry
Over the past three years, Mammoth Energy Services' EPS grew by 75% and over the past three years, the total loss to shareholders 5.5%
The performance at Mammoth Energy Services, Inc. (NASDAQ:TUSK) has been rather lacklustre of late and shareholders may be wondering what CEO Arty Straehla is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 12th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
See our latest analysis for Mammoth Energy Services
Comparing Mammoth Energy Services, Inc.'s CEO Compensation With The Industry
According to our data, Mammoth Energy Services, Inc. has a market capitalization of US$170m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2023. That's just a smallish increase of 7.7% on last year. We note that the salary of US$700.0k makes up a sizeable portion of the total compensation received by the CEO.
On comparing similar companies from the American Energy Services industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$2.5m. In other words, Mammoth Energy Services pays its CEO lower than the industry median. Moreover, Arty Straehla also holds US$3.7m worth of Mammoth Energy Services 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$700k | US$595k | 59% |
Other | US$490k | US$509k | 41% |
Total Compensation | US$1.2m | US$1.1m | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. According to our research, Mammoth Energy Services has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Mammoth Energy Services, Inc.'s Growth
Mammoth Energy Services, Inc. has seen its earnings per share (EPS) increase by 75% 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. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Mammoth Energy Services, Inc. Been A Good Investment?
Since shareholders would have lost about 5.5% over three years, some Mammoth Energy Services, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
The lacklustre share price returns is rather divergent to the robust growth in EPS, suggesting that there may be other factors weighing on it apart from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Mammoth Energy Services that investors should be aware of in a dynamic business environment.
Important note: Mammoth Energy Services 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.
