Ed Coll has been the CEO of Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) since 2014, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Pangaea Logistics Solutions
How Does Total Compensation For Ed Coll Compare With Other Companies In The Industry?
Our data indicates that Pangaea Logistics Solutions, Ltd. has a market capitalization of US$110m, and total annual CEO compensation was reported as US$1.5m for the year to December 2019. That’s a notable increase of 20% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$250k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$201k. This suggests that Ed Coll is paid more than the median for the industry. What’s more, Ed Coll holds US$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$250k | US$250k | 17% |
| Other | US$1.3m | US$1.0m | 83% |
| Total Compensation | US$1.5m | US$1.3m | 100% |
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. Pangaea Logistics Solutions pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
A Look at Pangaea Logistics Solutions, Ltd.’s Growth Numbers
Pangaea Logistics Solutions, Ltd. has reduced its earnings per share by 66% a year over the last three years. Its revenue is up 15% over the last year.
The decrease in EPS could be a concern for some investors. 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 Pangaea Logistics Solutions, Ltd. Been A Good Investment?
Pangaea Logistics Solutions, Ltd. has not done too badly by shareholders, with a total return of 2.4%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude…
As previously discussed, Ed is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. At the same time, revenue figures for the company are growing at a nice pace over the last year. Shareholder returns have also grown during this time, but haven’t been as impressive. EPS growth, meanwhile, has been negative. While the CEO may not be underpaid, we don’t think the pay is too generous either.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Pangaea Logistics Solutions you should be aware of, and 1 of them can’t be ignored.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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