How Should Investors React To Oxbridge Re Holdings Limited’s (NASDAQ:OXBR) CEO Pay?

In 2013 Jay Madhu was appointed CEO of Oxbridge Re Holdings Limited (NASDAQ:OXBR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Oxbridge Re Holdings

How Does Jay Madhu’s Compensation Compare With Similar Sized Companies?

Our data indicates that Oxbridge Re Holdings Limited is worth US$8m, and total annual CEO compensation is US$309k. That’s a fairly small increase of 5.3% on year before. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$288k.

That means Jay Madhu receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Oxbridge Re Holdings has changed over time.

NasdaqCM:OXBR CEO Compensation October 12th 18
NasdaqCM:OXBR CEO Compensation October 12th 18

Is Oxbridge Re Holdings Limited Growing?

Oxbridge Re Holdings Limited has reduced its earnings per share by an average of 114% a year, over the last three years. Its revenue is up 11% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth wto overlook the fact that earnings per share has gone backwards over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Oxbridge Re Holdings Limited Been A Good Investment?

Since shareholders would have lost about 72% over three years, some Oxbridge Re Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Remuneration for Jay Madhu is close enough to the median pay for a CEO of a similar sized company .

The company isn’t growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Oxbridge Re Holdings Limited.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.