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In 2015 Gary Vogel was appointed CEO of Eagle Bulk Shipping Inc. (NASDAQ:EGLE). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Gary Vogel's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Eagle Bulk Shipping Inc. has a market cap of US$400m, and is paying total annual CEO compensation of US$3.5m. (This figure is for the year to December 2018). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$675k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
Thus we can conclude that Gary Vogel receives more in total compensation than the median of a group of companies in the same market, and of similar size to Eagle Bulk Shipping Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Eagle Bulk Shipping, below.
Is Eagle Bulk Shipping Inc. Growing?
Eagle Bulk Shipping Inc. has increased its earnings per share (EPS) by an average of 142% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 14%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Eagle Bulk Shipping Inc. Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in Eagle Bulk Shipping Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Eagle Bulk Shipping Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Eagle Bulk Shipping (free visualization of insider trades).
If you want to buy a stock that is better than Eagle Bulk Shipping, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.