Chris Bradshaw has been the CEO of Era Group Inc. (NYSE:ERA) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Chris Bradshaw's Compensation Compare With Similar Sized Companies?
According to our data, Era Group Inc. has a market capitalization of US$181m, and pays its CEO total annual compensation worth US$3.0m. (This is based on the year to December 2018). Notably, that's an increase of 36% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$625k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
It would therefore appear that Era Group Inc. pays Chris Bradshaw 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, below, how CEO compensation at Era Group has changed over time.
Is Era Group Inc. Growing?
Era Group Inc. has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). Its revenue is down -7.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Era Group Inc. Been A Good Investment?
Since shareholders would have lost about 14% over three years, some Era Group Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Era Group Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. This doesn't look great when you consider CEO remuneration is up on last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Era Group (free visualization of insider trades).
If you want to buy a stock that is better than Era Group, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.