Should You Worry About Orchid Island Capital Inc’s (NYSE:ORC) CEO Pay Check?
Robert Cauley has been the CEO of Orchid Island Capital Inc (NYSE:ORC) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
View our latest analysis for Orchid Island Capital
How Does Robert Cauley’s Compensation Compare With Similar Sized Companies?
According to our data, Orchid Island Capital Inc has a market capitalization of US$356m, and pays its CEO total annual compensation worth US$171k. That’s less than last year. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$2m.
Most shareholders would consider it a positive that Robert Cauley takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Orchid Island Capital has changed from year to year.
Is Orchid Island Capital Inc Growing?
Over the last three years Orchid Island Capital Inc has shrunk its earnings per share by an average of 52% per year. Its revenue is up 105% over last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Orchid Island Capital Inc Been A Good Investment?
Orchid Island Capital Inc has not done too badly by shareholders, with a total return of 8.8%, over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
It looks like Orchid Island Capital Inc pays its CEO less than similar sized companies.
Robert Cauley is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. But on this analysis I see no issue with the CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Orchid Island Capital Inc shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
