Oxbridge Re Holdings Limited's (NASDAQ:OXBR) CEO Looks Due For A Compensation Raise

The solid performance at Oxbridge Re Holdings Limited (NASDAQ:OXBR) has been impressive and shareholders will probably be pleased to know that CEO Jay Madhu has delivered. At the upcoming AGM on 02 June 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Oxbridge Re Holdings

How Does Total Compensation For Jay Madhu Compare With Other Companies In The Industry?

According to our data, Oxbridge Re Holdings Limited has a market capitalization of US$14m, and paid its CEO total annual compensation worth US$237k over the year to December 2020. We note that's a decrease of 23% compared to last year. In particular, the salary of US$232.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$361k. This suggests that Jay Madhu is paid below the industry median. Furthermore, Jay Madhu directly owns US$390k worth of shares in the company.

Component	2020	2019	Proportion (2020)
Salary	US$232k	US$232k	98%
Other	US$5.3k	US$78k	2%
Total Compensation	US$237k	US$310k	100%

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. Oxbridge Re Holdings has gone down a largely traditional route, paying Jay Madhu a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Oxbridge Re Holdings Limited's Growth

Oxbridge Re Holdings Limited has seen its earnings per share (EPS) increase by 111% a year over the past three years. In the last year, its revenue is up 85%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Oxbridge Re Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 52% over three years, Oxbridge Re Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Jay receives almost all of their compensation through a salary. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Oxbridge Re Holdings that you should be aware of before investing.

Important note: Oxbridge Re Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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