Here's Why Shareholders May Want To Be Cautious With Increasing Aris Water Solutions, Inc.'s (NYSE:ARIS) CEO Pay Packet

Key Insights

• Aris Water Solutions' Annual General Meeting to take place on 21st of May
• Salary of US$732.3k is part of CEO Mandy Brock's total remuneration
• The overall pay is 57% above the industry average
• Over the past three years, Aris Water Solutions' EPS grew by 70% and over the past three years, the total shareholder return was 49%

CEO Mandy Brock has done a decent job of delivering relatively good performance at Aris Water Solutions, Inc. (NYSE:ARIS) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of May. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Aris Water Solutions

How Does Total Compensation For Mandy Brock Compare With Other Companies In The Industry?

According to our data, Aris Water Solutions, Inc. has a market capitalization of US$1.4b, and paid its CEO total annual compensation worth US$9.2m over the year to December 2024. We note that's an increase of 95% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$732k.

On comparing similar companies from the American Energy Services industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$5.9m. Hence, we can conclude that Mandy Brock is remunerated higher than the industry median. Furthermore, Mandy Brock directly owns US$5.4m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that Aris Water Solutions allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Aris Water Solutions, Inc.'s Growth

Aris Water Solutions, Inc. has seen its earnings per share (EPS) increase by 70% a year over the past three years. In the last year, its revenue is up 12%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

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

We think that the total shareholder return of 49%, over three years, would leave most Aris Water Solutions, 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Aris Water Solutions you should be aware of, and 1 of them is potentially serious.

Switching gears from Aris Water Solutions, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.