Shareholders May Be More Conservative With Civeo Corporation's (NYSE:CVEO) CEO Compensation For Now

Key Insights

• Civeo to hold its Annual General Meeting on 15th of May
• Total pay for CEO Bradley Dodson includes US$750.0k salary
• The total compensation is 38% higher than the average for the industry
• Over the past three years, Civeo's EPS grew by 311% and over the past three years, the total shareholder return was 54%

CEO Bradley Dodson has done a decent job of delivering relatively good performance at Civeo Corporation (NYSE:CVEO) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Civeo

How Does Total Compensation For Bradley Dodson Compare With Other Companies In The Industry?

At the time of writing, our data shows that Civeo Corporation has a market capitalization of US$361m, and reported total annual CEO compensation of US$6.3m for the year to December 2023. Notably, that's an increase of 34% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$750k.

For comparison, other companies in the American Commercial Services industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$4.6m. Hence, we can conclude that Bradley Dodson is remunerated higher than the industry median. Moreover, Bradley Dodson also holds US$5.6m worth of Civeo stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$750k	US$750k	12%
Other	US$5.6m	US$4.0m	88%
Total Compensation	US$6.3m	US$4.7m	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. It's interesting to note that Civeo allocates a smaller portion of compensation to salary in comparison 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 Civeo Corporation's Growth Numbers

Over the past three years, Civeo Corporation has seen its earnings per share (EPS) grow by 311% per year. Revenue was pretty flat on 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Civeo Corporation Been A Good Investment?

Boasting a total shareholder return of 54% over three years, Civeo Corporation 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Civeo (1 is a bit concerning!) that you should be aware of before investing here.

Switching gears from Civeo, 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.

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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.