In 2014 Ed Coll was appointed CEO of Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ed Coll’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Pangaea Logistics Solutions, Ltd. has a market cap of US$145m, and reported total annual CEO compensation of US$1.3m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$250k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$497k.
Thus we can conclude that Ed Coll receives more in total compensation than the median of a group of companies in the same market, and of similar size to Pangaea Logistics Solutions, Ltd.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. It could be important to check this free visual depiction of what analysts expect for the future.
You can see, below, how CEO compensation at Pangaea Logistics Solutions has changed over time.
Is Pangaea Logistics Solutions, Ltd. Growing?
Pangaea Logistics Solutions, Ltd. has increased its earnings per share (EPS) by an average of 56% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 6.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Has Pangaea Logistics Solutions, Ltd. Been A Good Investment?
Pangaea Logistics Solutions, Ltd. has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Pangaea Logistics Solutions, Ltd., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Pangaea Logistics Solutions insiders are buying or selling shares.
Important note: Pangaea Logistics Solutions may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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