Should You Worry About Ocean Bio-Chem, Inc.'s (NASDAQ:OBCI) CEO Pay Cheque?
In 1973 Peter Dornau was appointed CEO of Ocean Bio-Chem, Inc. (NASDAQ:OBCI). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Ocean Bio-Chem
How Does Peter Dornau's Compensation Compare With Similar Sized Companies?
Our data indicates that Ocean Bio-Chem, Inc. is worth US$32m, and total annual CEO compensation was reported as US$312k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$195k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$509k.
A first glance this seems like a real positive for shareholders, since Peter Dornau is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Ocean Bio-Chem has changed from year to year.
Is Ocean Bio-Chem, Inc. Growing?
Over the last three years Ocean Bio-Chem, Inc. has grown its earnings per share (EPS) by an average of 5.8% per year (using a line of best fit). In the last year, its revenue changed by just 0.9%.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Ocean Bio-Chem, Inc. Been A Good Investment?
Given the total loss of 9.0% over three years, many shareholders in Ocean Bio-Chem, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like Ocean Bio-Chem, Inc. pays its CEO less than similar sized companies.
Peter Dornau receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Shareholders may want to check for free if Ocean Bio-Chem insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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