Stock Analysis

What Did Oxbridge Re Holdings Limited's (NASDAQ:OXBR) CEO Take Home Last Year?

Jay Madhu has been the CEO of Oxbridge Re Holdings Limited (NASDAQ:OXBR) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Oxbridge Re Holdings

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

Our data indicates that Oxbridge Re Holdings Limited is worth US$6.0m, and total annual CEO compensation is US$239k. (This figure is for the year to December 2018). Notably, the salary of US$232k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$497k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

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

NasdaqCM:OXBR CEO Compensation, August 27th 2019
NasdaqCM:OXBR CEO Compensation, August 27th 2019

Is Oxbridge Re Holdings Limited Growing?

Oxbridge Re Holdings Limited has reduced its earnings per share by an average of 46% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -84%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO.

Has Oxbridge Re Holdings Limited Been A Good Investment?

Given the total loss of 77% over three years, many shareholders in Oxbridge Re Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Oxbridge Re Holdings Limited is currently paying its CEO below what is normal for companies of its size.

Jay Madhu is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Oxbridge Re Holdings (free visualization of insider trades).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

About NasdaqCM:OXBR

Oxbridge Re Holdings

Through its subsidiaries, provides specialty property and casualty reinsurance solutions.

High growth potential with moderate risk.

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