Yahoo Finance Does W&T Offshore, Inc.'s (NYSE:WTI) CEO Salary Reflect Performance?
In 1983 Tracy Krohn was appointed CEO of W&T Offshore, Inc. (NYSE:WTI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for W&T Offshore
How Does Tracy Krohn's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that W&T Offshore, Inc. has a market cap of US$624m, and reported total annual CEO compensation of US$6.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. 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 from US$400m to US$1.6b, and the median CEO total compensation was US$2.6m.
As you can see, Tracy Krohn is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean W&T Offshore, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at W&T Offshore has changed from year to year.
Is W&T Offshore, Inc. Growing?
Over the last three years W&T Offshore, Inc. has grown its earnings per share (EPS) by an average of 105% per year (using a line of best fit). Its revenue is down 7.1% over last year.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has W&T Offshore, Inc. Been A Good Investment?
Most shareholders would probably be pleased with W&T Offshore, Inc. for providing a total return of 215% 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.
In Summary...
We compared the total CEO remuneration paid by W&T Offshore, 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.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at W&T Offshore.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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