Shareholders May Not Be So Generous With Pangaea Logistics Solutions, Ltd.'s (NASDAQ:PANL) CEO Compensation And Here's Why

Key Insights

• Pangaea Logistics Solutions to hold its Annual General Meeting on 8th of August
• Total pay for CEO Mark Filanowski includes US$450.0k salary
• The total compensation is 220% higher than the average for the industry
• Over the past three years, Pangaea Logistics Solutions' EPS grew by 10% and over the past three years, the total shareholder return was 73%

Under the guidance of CEO Mark Filanowski, Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 8th of August. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Pangaea Logistics Solutions

How Does Total Compensation For Mark Filanowski Compare With Other Companies In The Industry?

At the time of writing, our data shows that Pangaea Logistics Solutions, Ltd. has a market capitalization of US$341m, and reported total annual CEO compensation of US$1.4m for the year to December 2023. That's a notable decrease of 12% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$450k.

For comparison, other companies in the American Shipping industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$448k. Accordingly, our analysis reveals that Pangaea Logistics Solutions, Ltd. pays Mark Filanowski north of the industry median. What's more, Mark Filanowski holds US$2.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$450k	US$250k	31%
Other	US$986k	US$1.4m	69%
Total Compensation	US$1.4m	US$1.6m	100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Pangaea Logistics Solutions pays out 31% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Pangaea Logistics Solutions, Ltd.'s Growth Numbers

Over the past three years, Pangaea Logistics Solutions, Ltd. has seen its earnings per share (EPS) grow by 10% per year. In the last year, its revenue is down 21%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pangaea Logistics Solutions, Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Pangaea Logistics Solutions, Ltd. for providing a total return of 73% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Pangaea Logistics Solutions that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com