Investing.com -- Barclays analyzed compensation structures and board composition for seven major US energy service companies across three time periods spanning 2013 to 2025, examining how pay metrics have evolved through different industry cycles.

The analysis covered SLB, HAL, BKR, WFRD, NOV, FTI, and HP, reviewing their proxy statements from peak cycle year 2013, trough cycle year 2019, and the emerging cycle period of 2024-2025.

Short-term compensation targets remain closely linked to industry cycles. EBITDA and EBIT represented the most common metrics in 2025 with a 34% relative weighting, followed by free cash flow at 23%. Both metrics correlate with upstream spending cycles.

Only 38% of financial targets were met in 2025, down from 67% in 2024, reflecting another flat year for the industry. Four of the seven companies still paid out 100% or more of compensation targets.

ESG metrics now account for 11% of compensation weighting in 2025, up from 3% in 2013, making it the third largest component. These metrics include reducing scope 1 and 2 greenhouse gas emissions, achieving 25% women in the global workforce, increasing electric frac fleets by more than 9%, and zero workplace fatalities. Free cash flow metrics have replaced earnings per share since 2013.

FTI, BKR, and HP achieved the highest payouts in 2024-2025, exceeding 100%. HAL recorded the lowest payouts among the group over the past 15 years, including 0% in both 2013 and 2019.

Board composition varies across companies. NOV has four of nine board members serving for more than 20 years, while HAL has three of eight members serving for more than 13 years.

SLB had 100% board turnover since 2013, as did WFRD following its restructuring. HP and NOV showed the lowest board turnover rates at 40% and 44% respectively.