How Much Is Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) Paying Its CEO?

Mark Gordon has been the CEO of Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Odyssey Marine Exploration.

View our latest analysis for Odyssey Marine Exploration

Comparing Odyssey Marine Exploration, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Odyssey Marine Exploration, Inc. has a market capitalization of US$85m, and reported total annual CEO compensation of US$463k for the year to December 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at US$376.3k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$571k. This suggests that Odyssey Marine Exploration remunerates its CEO largely in line with the industry average. Moreover, Mark Gordon also holds US$914k worth of Odyssey Marine Exploration stock directly under their own name.

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. Odyssey Marine Exploration pays out 81% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Odyssey Marine Exploration, Inc.'s Growth Numbers

Over the last three years, Odyssey Marine Exploration, Inc. has shrunk its earnings per share by 20% per year. It saw its revenue drop 21% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Odyssey Marine Exploration, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Odyssey Marine Exploration, Inc. for providing a total return of 68% over three years. 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.

In Summary...

As we touched on above, Odyssey Marine Exploration, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This isn't great when you look at it against the backdrop of EPS growth, which has been negative for the past three years. On the flip side, shareholder returns have been strong over the same time, which is certainly a positive sign. We do not think CEO compensation is a problem, but shareholders might think performance needs to be improved before paying any more.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Odyssey Marine Exploration that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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