Bruno Y. Chabas has been the CEO of SBM Offshore N.V. (AMS:SBMO) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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 Bruno Y. Chabas’s Compensation Compare With Similar Sized Companies?
According to our data, SBM Offshore N.V. has a market capitalization of €2.7b, and pays its CEO total annual compensation worth US$2.8m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$747k. We examined companies with market caps from €1.8b to €5.6b, and discovered that the median CEO compensation of that group was €1.5m.
It would therefore appear that SBM Offshore N.V. pays Bruno Y. Chabas 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at SBM Offshore, below.
Is SBM Offshore N.V. Growing?
On average over the last three years, SBM Offshore N.V. has shrunk earnings per share by 96% each year. In the last year, its revenue is down -2.2%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has SBM Offshore N.V. Been A Good Investment?
Boasting a total shareholder return of 46% over three years, SBM Offshore N.V. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at SBM Offshore N.V. 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.We think many shareholders would be underwhelmed with the business growth over the last three years.
But clearly there are some positives, because investors have done well over the same time frame. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SBM Offshore (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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 email@example.com.