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This article will reflect on the compensation paid to Richard Hubbell who has served as CEO of Marine Products Corporation (NYSE:MPX) since 2001. This analysis will also assess whether Marine Products pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Richard Hubbell Compare With Other Companies In The Industry?
Our data indicates that Marine Products Corporation has a market capitalization of US$585m, and total annual CEO compensation was reported as US$1.2m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$550k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$879k. This suggests that Richard Hubbell is paid more than the median for the industry. Moreover, Richard Hubbell also holds US$20m worth of Marine Products stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 26% of total compensation represents salary and 74% is other remuneration. It's interesting to note that Marine Products pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Marine Products Corporation's Growth
Over the last three years, Marine Products Corporation has shrunk its earnings per share by 1.5% per year. Its revenue is down 28% over the previous year.
Its a bit disappointing to see that the company has failed to grow its EPS. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Marine Products Corporation Been A Good Investment?
Marine Products Corporation has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
As we noted earlier, Marine Products pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Meanwhile, EPS has not been growing sufficiently to impress us, over the last three years. While shareholder returns are acceptable, they don't delight. So you can understand why we do not think CEO compensation is particularly modest!
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Marine Products that investors should look into moving forward.
Switching gears from Marine Products, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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