We Think Oceaneering International, Inc.'s (NYSE:OII) CEO Compensation Looks Fair

Key Insights

• Oceaneering International will host its Annual General Meeting on 9th of May
• CEO Rod Larson's total compensation includes salary of US$840.0k
• The total compensation is similar to the average for the industry
• Oceaneering International's total shareholder return over the past three years was 59% while its EPS grew by 89% over the past three years

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The performance at Oceaneering International, Inc. (NYSE:OII) has been quite strong recently and CEO Rod Larson has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 9th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Oceaneering International

Comparing Oceaneering International, Inc.'s CEO Compensation With The Industry

Our data indicates that Oceaneering International, Inc. has a market capitalization of US$1.9b, and total annual CEO compensation was reported as US$7.4m for the year to December 2024. That's slightly lower by 4.5% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$840k.

On examining similar-sized companies in the American Energy Services industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$6.0m. From this we gather that Rod Larson is paid around the median for CEOs in the industry. Furthermore, Rod Larson directly owns US$7.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$840k	US$800k	11%
Other	US$6.6m	US$7.0m	89%
Total Compensation	US$7.4m	US$7.8m	100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Oceaneering International pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Oceaneering International, Inc.'s Growth

Over the past three years, Oceaneering International, Inc. has seen its earnings per share (EPS) grow by 89% per year. It achieved revenue growth of 10% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Oceaneering International, Inc. Been A Good Investment?

We think that the total shareholder return of 59%, over three years, would leave most Oceaneering International, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Oceaneering International.

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. 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.