We Think SEACOR Marine Holdings Inc.'s (NYSE:SMHI) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• SEACOR Marine Holdings will host its Annual General Meeting on 3rd of June
• Total pay for CEO John Gellert includes US$600.0k salary
• Total compensation is 106% above industry average
• SEACOR Marine Holdings' three-year loss to shareholders was 45% while its EPS was down 9.2% over the past three years

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The results at SEACOR Marine Holdings Inc. (NYSE:SMHI) have been quite disappointing recently and CEO John Gellert bears some responsibility for this. At the upcoming AGM on 3rd of June, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for SEACOR Marine Holdings

How Does Total Compensation For John Gellert Compare With Other Companies In The Industry?

At the time of writing, our data shows that SEACOR Marine Holdings Inc. has a market capitalization of US$132m, and reported total annual CEO compensation of US$3.8m for the year to December 2024. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$600k.

On comparing similar-sized companies in the American Energy Services industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.8m. Hence, we can conclude that John Gellert is remunerated higher than the industry median. What's more, John Gellert holds US$6.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that SEACOR Marine Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

SEACOR Marine Holdings Inc.'s Growth

Over the last three years, SEACOR Marine Holdings Inc. has shrunk its earnings per share by 9.2% per year. It saw its revenue drop 6.0% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

The return of -45% over three years would not have pleased SEACOR Marine Holdings Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 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. 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.