Here's Why Shareholders Will Not Be Complaining About Overseas Shipholding Group, Inc.'s (NYSE:OSG) CEO Pay Packet

Key Insights

• Overseas Shipholding Group's Annual General Meeting to take place on 6th of June
• Salary of US$446.3k is part of CEO Sam Norton's total remuneration
• Total compensation is similar to the industry average
• Overseas Shipholding Group's total shareholder return over the past three years was 286% while its EPS grew by 106% over the past three years

The performance at Overseas Shipholding Group, Inc. (NYSE:OSG) has been quite strong recently and CEO Sam Norton has played a role in it. Coming up to the next AGM on 6th of June, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Overseas Shipholding Group

How Does Total Compensation For Sam Norton Compare With Other Companies In The Industry?

At the time of writing, our data shows that Overseas Shipholding Group, Inc. has a market capitalization of US$607m, and reported total annual CEO compensation of US$2.9m for the year to December 2023. Notably, that's an increase of 21% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$446k.

In comparison with other companies in the American Oil and Gas industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.8m. This suggests that Overseas Shipholding Group remunerates its CEO largely in line with the industry average. Furthermore, Sam Norton directly owns US$21m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$446k	US$425k	16%
Other	US$2.4m	US$1.9m	84%
Total Compensation	US$2.9m	US$2.4m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Overseas Shipholding Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Overseas Shipholding Group, Inc.'s Growth

Over the past three years, Overseas Shipholding Group, Inc. has seen its earnings per share (EPS) grow by 106% per year. In the last year, its revenue is down 4.4%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Overseas Shipholding Group, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Overseas Shipholding Group, Inc. for providing a total return of 286% over three years. 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Overseas Shipholding Group that you should be aware of before investing.

Switching gears from Overseas Shipholding Group, 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.