In 2014 Mark Gordon was appointed CEO of Odyssey Marine Exploration, Inc. (NASDAQ:OMEX). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Mark Gordon’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Odyssey Marine Exploration, Inc. has a market cap of US$45m, and is paying total annual CEO compensation of US$501k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$376k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$301k.
It would therefore appear that Odyssey Marine Exploration, Inc. pays Mark Gordon 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Odyssey Marine Exploration, below.
Is Odyssey Marine Exploration, Inc. Growing?
On average over the last three years, Odyssey Marine Exploration, Inc. has grown earnings per share (EPS) by 45% each year (using a line of best fit). Its revenue is up 98% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Odyssey Marine Exploration, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Odyssey Marine Exploration, Inc. for providing a total return of 61% over three years. 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.
We examined the amount Odyssey Marine Exploration, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Odyssey Marine Exploration shares with their own money (free access).
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 email@example.com.