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John Gellert became the CEO of SEACOR Marine Holdings Inc. (NYSE:SMHI) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for SEACOR Marine Holdings.
How Does Total Compensation For John Gellert Compare With Other Companies In The Industry?
Our data indicates that SEACOR Marine Holdings Inc. has a market capitalization of US$60m, and total annual CEO compensation was reported as US$1.6m for the year to December 2019. Notably, that's an increase of 16% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$450k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.7m. This suggests that SEACOR Marine Holdings remunerates its CEO largely in line with the industry average. What's more, John Gellert holds US$1.1m worth of shares in the company in their own name.
On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. SEACOR Marine Holdings pays out 27% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at SEACOR Marine Holdings Inc.'s Growth Numbers
SEACOR Marine Holdings Inc.'s earnings per share (EPS) grew 26% per year over the last three years. Its revenue is down 13% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has SEACOR Marine Holdings Inc. Been A Good Investment?
Given the total shareholder loss of 79% over three years, many shareholders in SEACOR Marine Holdings Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, SEACOR Marine Holdings Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But on the bright side, EPS growth is positive over the same period. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 1 which is concerning) in SEACOR Marine Holdings we think you should know about.
Switching gears from SEACOR Marine Holdings, 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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