Peter Dornau has been the CEO of Ocean Bio-Chem Inc (NASDAQ:OBCI) since 1973. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Peter Dornau’s Compensation Compare With Similar Sized Companies?
According to our data, Ocean Bio-Chem Inc has a market capitalization of US$32m, and pays its CEO total annual compensation worth US$300k. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$183k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$295k.
So Peter Dornau receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Ocean Bio-Chem has changed over time.
Is Ocean Bio-Chem Inc Growing?
On average over the last three years, Ocean Bio-Chem Inc has grown earnings per share (EPS) by 49% each year. In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Ocean Bio-Chem Inc Been A Good Investment?
Boasting a total shareholder return of 72% over three years, Ocean Bio-Chem Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Peter Dornau is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Ocean Bio-Chem insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.