Stock Analysis

    How Much Does Seacor Holdings' (NYSE:CKH) CEO Make?

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    Charles Fabrikant became the CEO of Seacor Holdings Inc. (NYSE:CKH) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

    See our latest analysis for Seacor Holdings

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    Comparing Seacor Holdings Inc.'s CEO Compensation With the industry

    According to our data, Seacor Holdings Inc. has a market capitalization of US$665m, and paid its CEO total annual compensation worth US$3.2m over the year to December 2019. Notably, that's a decrease of 28% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$460k.

    For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$4.4m. So it looks like Seacor Holdings compensates Charles Fabrikant in line with the median for the industry. What's more, Charles Fabrikant holds US$25m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

    Component20192018Proportion (2019)
    SalaryUS$460kUS$460k14%
    OtherUS$2.7mUS$4.0m86%
    Total CompensationUS$3.2m US$4.4m100%

    Talking in terms of the industry, salary represented approximately 21% of total compensation out of all the companies we analyzed, while other remuneration made up 79% of the pie. Seacor Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

    ceo-compensation
    NYSE:CKH CEO Compensation November 16th 2020

    Seacor Holdings Inc.'s Growth

    Over the last three years, Seacor Holdings Inc. has shrunk its earnings per share by 39% per year. It saw its revenue drop 11% over the last year.

    Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Seacor Holdings Inc. Been A Good Investment?

    Given the total shareholder loss of 33% over three years, many shareholders in Seacor Holdings Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

    To Conclude...

    As we noted earlier, Seacor Holdings pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

    CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Seacor Holdings 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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