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.
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.
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.
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.
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.
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