A Quick Analysis On Mammoth Energy Services' (NASDAQ:TUSK) CEO Compensation

This article will reflect on the compensation paid to Arty Straehla who has served as CEO of Mammoth Energy Services, Inc. (NASDAQ:TUSK) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Mammoth Energy Services.

Check out our latest analysis for Mammoth Energy Services

How Does Total Compensation For Arty Straehla Compare With Other Companies In The Industry?

Our data indicates that Mammoth Energy Services, Inc. has a market capitalization of US$73m, and total annual CEO compensation was reported as US$1.8m for the year to December 2019. We note that's a decrease of 15% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$582k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.8m. So it looks like Mammoth Energy Services compensates Arty Straehla in line with the median for the industry. What's more, Arty Straehla holds US$819k worth of shares in the company in their own name.

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. Mammoth Energy Services pays out 32% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Mammoth Energy Services, Inc.'s Growth

Over the last three years, Mammoth Energy Services, Inc. has shrunk its earnings per share by 50% per year. In the last year, its revenue is down 69%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Mammoth Energy Services, Inc. Been A Good Investment?

With a three year total loss of 91% for the shareholders, Mammoth Energy Services, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Arty is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Mammoth Energy Services that investors should be aware of in a dynamic business environment.

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.

This article by Simply Wall St is general in nature. 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.

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