In 2017 John Wobensmith was appointed CEO of Genco Shipping & Trading Limited (NYSE:GNK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Wobensmith's Compensation Compare With Similar Sized Companies?
According to our data, Genco Shipping & Trading Limited has a market capitalization of US$428m, and paid its CEO total annual compensation worth US$2.2m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$650k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
So John Wobensmith is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Genco Shipping & Trading has changed from year to year.
Is Genco Shipping & Trading Limited Growing?
Over the last three years Genco Shipping & Trading Limited has grown its earnings per share (EPS) by an average of 120% per year (using a line of best fit). It achieved revenue growth of 32% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Genco Shipping & Trading Limited Been A Good Investment?
Boasting a total shareholder return of 92% over three years, Genco Shipping & Trading Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
John Wobensmith is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Genco Shipping & Trading (free visualization of insider trades).
If you want to buy a stock that is better than Genco Shipping & Trading, 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.