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Is Pangaea Logistics Solutions, Ltd.'s (NASDAQ:PANL) CEO Paid At A Competitive Rate?

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Ed Coll has been the CEO of Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Pangaea Logistics Solutions

How Does Ed Coll's Compensation Compare With Similar Sized Companies?

According to our data, Pangaea Logistics Solutions, Ltd. has a market capitalization of US$143m, and paid its CEO total annual compensation worth US$1.3m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$250k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$496k.

Thus we can conclude that Ed Coll receives more in total compensation than the median of a group of companies in the same market, and of similar size to Pangaea Logistics Solutions, Ltd.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Pangaea Logistics Solutions, below.

NasdaqCM:PANL CEO Compensation, October 8th 2019
NasdaqCM:PANL CEO Compensation, October 8th 2019

Is Pangaea Logistics Solutions, Ltd. Growing?

On average over the last three years, Pangaea Logistics Solutions, Ltd. has grown earnings per share (EPS) by 56% each year (using a line of best fit). Its revenue is down 6.7% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.

Has Pangaea Logistics Solutions, Ltd. Been A Good Investment?

Pangaea Logistics Solutions, Ltd. has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We examined the amount Pangaea Logistics Solutions, Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. So you may want to check if insiders are buying Pangaea Logistics Solutions shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.com. 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.