We Take A Look At Why Orion Group Holdings, Inc.'s (NYSE:ORN) CEO Has Earned Their Pay Packet
Key Insights
- Orion Group Holdings to hold its Annual General Meeting on 15th of May
- Total pay for CEO Travis Boone includes US$800.0k salary
- The overall pay is comparable to the industry average
- Orion Group Holdings' EPS grew by 43% over the past three years while total shareholder return over the past three years was 183%
We have been pretty impressed with the performance at Orion Group Holdings, Inc. (NYSE:ORN) recently and CEO Travis Boone deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 15th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Orion Group Holdings
How Does Total Compensation For Travis Boone Compare With Other Companies In The Industry?
Our data indicates that Orion Group Holdings, Inc. has a market capitalization of US$296m, and total annual CEO compensation was reported as US$3.6m for the year to December 2024. That's a notable increase of 49% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$800k.
On examining similar-sized companies in the American Construction industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$3.0m. From this we gather that Travis Boone is paid around the median for CEOs in the industry. What's more, Travis Boone holds US$4.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$800k | US$750k | 22% |
| Other | US$2.8m | US$1.7m | 78% |
| Total Compensation | US$3.6m | US$2.4m | 100% |
On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. Orion Group Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Orion Group Holdings, Inc.'s Growth
Over the past three years, Orion Group Holdings, Inc. has seen its earnings per share (EPS) grow by 43% per year. It achieved revenue growth of 16% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Orion Group Holdings, Inc. Been A Good Investment?
We think that the total shareholder return of 183%, over three years, would leave most Orion Group Holdings, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Orion Group Holdings that investors should be aware of in a dynamic business environment.
Switching gears from Orion Group Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Valuation is complex, but we're here to simplify it.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.