In This Article:
In 2012 Bruno Y. Chabas was appointed CEO of SBM Offshore N.V. (AMS:SBMO). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for SBM Offshore
How Does Bruno Y. Chabas's Compensation Compare With Similar Sized Companies?
According to our data, SBM Offshore N.V. has a market capitalization of €3.0b, and paid its CEO total annual compensation worth US$5.4m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$800k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from €1.8b to €5.8b, we found the median CEO total compensation was €2.2m.
Thus we can conclude that Bruno Y. Chabas receives more in total compensation than the median of a group of companies in the same market, and of similar size to SBM Offshore N.V.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at SBM Offshore, below.
Is SBM Offshore N.V. Growing?
Over the last three years SBM Offshore N.V. has grown its earnings per share (EPS) by an average of 9.7% per year (using a line of best fit). It achieved revenue growth of 34% over the last year.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! You might want to check this free visual report on analyst forecasts for future earnings.
Has SBM Offshore N.V. Been A Good Investment?
With a total shareholder return of 31% over three years, SBM Offshore N.V. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount SBM Offshore N.V. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.