Baker Hughes management check
BKR · Energy · Oil & Gas Equipment & Services · CEO Lorenzo Simonelli
Filings as of
5 good · 2 to watch · 0 flagged, across the seven questions below.
- Good
Have owners done well?
Beat its chosen peers$100 invested at the start of fiscal 2021 grew to $248, against $165 for the peer group the company picked itself.
- Good
Does pay follow performance?
Pay rose and fell with returnsOver 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.77 with shareholder return. 1 means pay moved in step; below 0, the opposite way.
- Good
What does the CEO cost owners?
0.8% of net income$21.4m of reported pay in fiscal 2025, against $2.6bn of net income.
- Watch
Do they own the stock?
CEO stake ≈ 2.4 years of payThe CEO holds 884,855 shares, directly or through trusts (unvested awards not counted): about 2.4 years of pay. Light activity: no buys, $28.7m sold in six months. 7 of 7 sales ran on pre-arranged 10b5-1 plans.
- Watch
Are owners being diluted?
Stock pay 0.7% of revenueStock-based pay was 0.7% of revenue in the latest year.
- Good
Is leadership stable?
7 leadership filings in 3 yearsCEO in the pay table: Mr. Simonelli. 7 filings under 8-K item 5.02 (officers or directors leaving or joining, or new pay arrangements) in the last 3 years.
- Good
Are the books clean?
No red flags on fileNo restatements, auditor changes or late filings since 2021.
Against the S&P 500
Each check's score (0–100) and how it compares: the share of ranked S&P 500 companies it matches or beats, and the median in Energy.
| Check | Score | At or above | Sector median |
|---|---|---|---|
| Owner returns | 100 | 64 | |
| Pay for performance | 88 | 65 | |
| CEO cost | 57 | 66 | |
| Skin in the game | 54 | 49 | |
| Dilution | 95 | 58 | |
| Stable leadership | 90 | 73 | |
| Clean books | 100 | 100 |
Closest peers
Others in Oil & Gas Equipment & Services, by management score. Baker Hughes is 3rd of 20 in its sector.
Pay versus performance
From the proxy statement filed March 30, 2026. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.
| Fiscal year | CEO | CEO pay | Actually paid | Other executives (avg) | $100 became | Peers | Net income |
|---|---|---|---|---|---|---|---|
| 2025 | Mr. Simonelli | $21.4m | $33.4m | $4.9m | $248 | $165 | $2.6bn |
| 2024 | — | $19.9m | $43.2m | $5.0m | $219 | $164 | $3.0bn |
| 2023 | — | $22.2m | $28.1m | $5.3m | $178 | $189 | $1.9bn |
| 2022 | — | $16.1m | $14.5m | $6.5m | $150 | $189 | −$601.0m |
| 2021 | — | $15.6m | $21.8m | $5.8m | $119 | $119 | −$219.0m |
The board says pay is tied most to Adjusted EBITDA. Its other key measures: FCF, ROIC, Relative TSR.
Insiders and the CEO's stake
Lorenzo Simonelli (Chairman, President and CEO) held 884,855 shares directly after their latest Form 4 on Jun 22, 2026, roughly $51.7m at that filing's price.
Light activity: no buys, $28.7m sold in six months. 7 of 7 sales ran on pre-arranged 10b5-1 plans.
- SoldLorenzo SimonelliChairman, President and CEO · 10b5-1 plan$22.1mJun 22, 2026
- SoldMaria C BorrasChief Growth & Experience Ofcr · 10b5-1 plan$4.0mJul 1, 2026
- SoldAhmed Farhan MoghalEVP, Chief Financial Officer · 10b5-1 plan$1.5mJun 15, 2026
- SoldJames E ApostolidesChief Infra & Performance Ofcr · 10b5-1 plan$814kMay 19, 2026
Leadership and governance on file
- May 19, 2026Leadership change8-K 5.02
- Oct 14, 2025Leadership change8-K 5.02
- Mar 31, 2025Leadership change8-K 5.02
- Feb 24, 2025Leadership change8-K 5.02
- May 24, 2024Leadership change8-K 5.02
- Mar 22, 2024Leadership change8-K 5.02
- Dec 1, 2023Leadership change8-K 5.02
- May 19, 2023Leadership change8-K 5.02
- May 5, 2023Leadership change8-K 5.02
- Jan 30, 2023Leadership change8-K 5.02
- Jan 9, 2023Leadership change8-K 5.02
- Dec 23, 2022Leadership change8-K 5.02
Latest shareholder vote results: May 19, 2026, including the say-on-pay vote.
Where the money went
Over 2021–2025: $6.5bn returned to owners in buybacks and dividends, 97% of net income, and $1.0bn of pay in stock.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $20.5bn | $21.2bn | $25.5bn | $27.8bn | $27.7bn |
| Net income | −$219.0m | −$601.0m | $1.9bn | $3.0bn | $2.6bn |
| Stock-based pay | $205.0m | $207.0m | $197.0m | $202.0m | $203.0m |
| Buybacks | $434.0m | $828.0m | $538.0m | $484.0m | $384.0m |
| Dividends | $592.0m | $726.0m | $786.0m | $836.0m | $910.0m |
| Diluted shares | — | — | — | — | — |
Educational only, not investment advice. Figures are as filed with the SEC: pay from the proxy's pay-versus-performance table, capital allocation from 10-K XBRL data, insider trades from Form 4s over the last six months, events from the last 5 years of filings. The peer group is the one the company chose. See the method.