Is Orion Group Holdings, Inc. (NYSE:ORN) Excessively Paying Its CEO?

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Mark Stauffer became the CEO of Orion Group Holdings, Inc. (NYSE:ORN) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Orion Group Holdings

How Does Mark Stauffer's Compensation Compare With Similar Sized Companies?

According to our data, Orion Group Holdings, Inc. has a market capitalization of US$66m, and pays its CEO total annual compensation worth US$1.7m. (This number is for the twelve months until December 2018). That's just a smallish increase of 6.3% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$570k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.

As you can see, Mark Stauffer is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Orion Group Holdings, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Orion Group Holdings has changed over time.

NYSE:ORN CEO Compensation, June 18th 2019
NYSE:ORN CEO Compensation, June 18th 2019

Is Orion Group Holdings, Inc. Growing?

Over the last three years Orion Group Holdings, Inc. has shrunk its earnings per share by an average of 94% per year (measured with a line of best fit). It saw its revenue drop -8.6% over the last year.

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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has Orion Group Holdings, Inc. Been A Good Investment?

Given the total loss of 57% over three years, many shareholders in Orion Group Holdings, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Orion Group Holdings, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Orion Group Holdings insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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