Here's Why Shareholders May Want To Be Cautious With Increasing International Seaways, Inc.'s (NYSE:INSW) CEO Pay Packet

By
Simply Wall St
Published
May 26, 2021
NYSE:INSW
Source: Shutterstock

In the past three years, the share price of International Seaways, Inc. (NYSE:INSW) has struggled to generate growth for its shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 02 June 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for International Seaways

How Does Total Compensation For Lois Zabrocky Compare With Other Companies In The Industry?

According to our data, International Seaways, Inc. has a market capitalization of US$577m, and paid its CEO total annual compensation worth US$3.4m over the year to December 2020. We note that's an increase of 20% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$672k.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.8m. Hence, we can conclude that Lois Zabrocky is remunerated higher than the industry median. Furthermore, Lois Zabrocky directly owns US$1.4m worth of shares in the company.

Component20202019Proportion (2020)
Salary US$672k US$615k 20%
Other US$2.7m US$2.2m 80%
Total CompensationUS$3.4m US$2.8m100%

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. There isn't a significant difference between International Seaways and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NYSE:INSW CEO Compensation May 27th 2021

International Seaways, Inc.'s Growth

International Seaways, Inc.'s earnings per share (EPS) grew 96% per year over the last three years. In the last year, its revenue is down 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 International Seaways, Inc. Been A Good Investment?

With a three year total loss of 0.2% for the shareholders, International Seaways, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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've identified 1 warning sign for International Seaways that investors should be aware of in a dynamic business environment.

Switching gears from International Seaways, 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.

If you decide to trade International Seaways, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.