This article will reflect on the compensation paid to Mark Stauffer who has served as CEO of Orion Group Holdings, Inc. (NYSE:ORN) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Orion Group Holdings.
Comparing Orion Group Holdings, Inc.'s CEO Compensation With the industry
According to our data, Orion Group Holdings, Inc. has a market capitalization of US$86m, and paid its CEO total annual compensation worth US$1.1m over the year to December 2019. Notably, that's a decrease of 37% over the year before. In particular, the salary of US$570.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$821k. So it looks like Orion Group Holdings compensates Mark Stauffer in line with the median for the industry. Moreover, Mark Stauffer also holds US$2.0m worth of Orion Group Holdings 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 21% of total compensation represents salary and 79% is other remuneration. It's interesting to note that Orion Group Holdings pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Orion Group Holdings, Inc.'s Growth
Orion Group Holdings, Inc. has reduced its earnings per share by 30% a year over the last three years. Its revenue is up 40% over the last year.
The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Orion Group Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 53% over three years, some Orion Group Holdings, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, Orion Group Holdings pays its CEO in line with similar-sized companies belonging to the same industry. However, revenues have increased over the past year, a positive sign for the company. In contrast, over the same time span, shareholder returns are negative. EPS growth is bleak as well, adding fuel to the fire. We'd say CEO compensation isn't unfair, but shareholders may be wary of a bump in pay before the company substantially improves overall performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Orion Group Holdings that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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