Peter Dornau became the CEO of Ocean Bio-Chem, Inc. (NASDAQ:OBCI) in 1973, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Ocean Bio-Chem.

See our latest analysis for Ocean Bio-Chem

How Does Total Compensation For Peter Dornau Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ocean Bio-Chem, Inc. has a market capitalization of US$121m, and reported total annual CEO compensation of US$294k for the year to December 2019. We note that's a small decrease of 5.7% on last year. Notably, the salary which is US$199.5k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$291k. So it looks like Ocean Bio-Chem compensates Peter Dornau in line with the median for the industry. Moreover, Peter Dornau also holds US$61m worth of Ocean Bio-Chem stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. It's interesting to note that Ocean Bio-Chem pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Ocean Bio-Chem, Inc.'s Growth

Over the past three years, Ocean Bio-Chem, Inc. has seen its earnings per share (EPS) grow by 49% per year. Its revenue is up 27% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ocean Bio-Chem, Inc. Been A Good Investment?

We think that the total shareholder return of 225%, over three years, would leave most Ocean Bio-Chem, Inc. shareholders smiling. 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.