SBM Offshore N.V.'s (AMS:SBMO) CEO Will Probably Have Their Compensation Approved By Shareholders

We have been pretty impressed with the performance at SBM Offshore N.V. (AMS:SBMO) recently and CEO Bruno Y. Chabas deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 07 April 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for SBM Offshore

Comparing SBM Offshore N.V.'s CEO Compensation With the industry

Our data indicates that SBM Offshore N.V. has a market capitalization of €2.9b, and total annual CEO compensation was reported as US$5.6m for the year to December 2020. Notably, that's an increase of 22% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

In comparison with other companies in the industry with market capitalizations ranging from €1.7b to €5.5b, the reported median CEO total compensation was US$5.4m. From this we gather that Bruno Y. Chabas is paid around the median for CEOs in the industry. What's more, Bruno Y. Chabas holds €19m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$1.2m	US$898k	21%
Other	US$4.5m	US$3.7m	79%
Total Compensation	US$5.6m	US$4.6m	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. In SBM Offshore's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at SBM Offshore N.V.'s Growth Numbers

SBM Offshore N.V. has seen its earnings per share (EPS) increase by 72% a year over the past three years. Its revenue is up 3.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 SBM Offshore N.V. Been A Good Investment?

Most shareholders would probably be pleased with SBM Offshore N.V. for providing a total return of 35% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for SBM Offshore (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: SBM Offshore is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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