There are many aspects to look at when choosing your investments. We present a few that tend to help narrow the choices while showing which ones would be great investments or be losers in the long run. Although we only cover a couple here these points can be applied to most public companies.
I will look at 5 oil service companies: Baker Hughes, Inc. (NYSE: BHI), Halliburton Co. (NYSE: HAL), National Oilwell Varco, Inc. (NYSE: NOV), Schlumberger NV (NYSE: SLB) and Weatherford International Ltd. (NYSE: WFT) and show that those with CEO compensation practices more attuned with investors delivered higher returns over the previous 3-year period and also YTD.
Total Shareholder Return during 2009-2011 and Year-To-Date (YTD)
Total Shareholder Return (TSR) includes both price appreciation and dividends received. Of these five companies, four pay dividends, only Weatherford does not. Of the four dividend payers, two-National Oilwell-Varco and Schlumberger-increased their dividends between 2009-2011. The chart below compares the 3-year TSR with total CEO compensation.
Read Full Article Here: http://turnkeyoil.com/2012/11/08/ceos-pay-can-be-great-indicator-bhi-hal-nov-slb-wft/
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.