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In 2014 Ed Coll was appointed CEO of Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ed Coll’s Compensation Compare With Similar Sized Companies?
According to our data, Pangaea Logistics Solutions, Ltd. has a market capitalization of US$124m, and pays its CEO total annual compensation worth US$956k. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$250k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$304k.
As you can see, Ed Coll is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Pangaea Logistics Solutions, Ltd. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Pangaea Logistics Solutions has changed from year to year.
Is Pangaea Logistics Solutions, Ltd. Growing?
Pangaea Logistics Solutions, Ltd. has increased its earnings per share (EPS) by an average of 70% a year, over the last three years Its revenue is up 6.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Pangaea Logistics Solutions, Ltd. Been A Good Investment?
Pangaea Logistics Solutions, Ltd. has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by Pangaea Logistics Solutions, Ltd., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Pangaea Logistics Solutions insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 email@example.com.