In 2015 Gary Vogel was appointed CEO of Eagle Bulk Shipping Inc (NASDAQ:EGLE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Gary Vogel’s Compensation Compare With Similar Sized Companies?
Our data indicates that Eagle Bulk Shipping Inc is worth US$311m, and total annual CEO compensation is US$4m. That’s actually a decrease on the year before. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$2m.
It would therefore appear that Eagle Bulk Shipping Inc pays Gary Vogel more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Eagle Bulk Shipping has changed from year to year.
Is Eagle Bulk Shipping Inc Growing?
Eagle Bulk Shipping Inc has increased its earnings per share (EPS) by an average of 135% a year, over the last three years It achieved revenue growth of 46% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
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 95% over three years, many shareholders in Eagle Bulk Shipping Inc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared total CEO remuneration at Eagle Bulk Shipping Inc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Shareholders may want to check for free if Eagle Bulk Shipping Inc insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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.