Shareholders Will Probably Hold Off On Increasing SEACOR Marine Holdings Inc.'s (NYSE:SMHI) CEO Compensation For The Time Being

Shareholders of SEACOR Marine Holdings Inc. (NYSE:SMHI) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 08 June 2021. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for SEACOR Marine Holdings

Comparing SEACOR Marine Holdings Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that SEACOR Marine Holdings Inc. has a market capitalization of US$111m, and reported total annual CEO compensation of US$1.6m for the year to December 2020. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$450k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$805k. This suggests that John Gellert is paid more than the median for the industry. What's more, John Gellert holds US$3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$450k	US$450k	28%
Other	US$1.1m	US$1.2m	72%
Total Compensation	US$1.6m	US$1.6m	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. According to our research, SEACOR Marine Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at SEACOR Marine Holdings Inc.'s Growth Numbers

Earnings per share at SEACOR Marine Holdings Inc. are much the same as they were three years ago, albeit with slightly higher. It saw its revenue drop 14% over the last year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 SEACOR Marine Holdings Inc. Been A Good Investment?

With a total shareholder return of -80% over three years, SEACOR Marine Holdings Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for SEACOR Marine Holdings that investors should think about before committing capital to this stock.

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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