Peter Dornau became the CEO of Ocean Bio-Chem, Inc. (NASDAQ:OBCI) in 1973. 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.

See our latest analysis for Ocean Bio-Chem

How Does Peter Dornau's Compensation Compare With Similar Sized Companies?

Our data indicates that Ocean Bio-Chem, Inc. is worth US$51m, and total annual CEO compensation was reported as US$294k for the year to December 2019. That's less than last year. While we always look at total compensation first, we note that the salary component is less, at US$200k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$596k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 12% of total compensation represents salary and 88% is other remuneration. Ocean Bio-Chem is paying a higher share of its remuneration through a salary in comparison to the overall industry.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. The graphic below shows how CEO compensation at Ocean Bio-Chem has changed from year to year.

Is Ocean Bio-Chem, Inc. Growing?

On average over the last three years, Ocean Bio-Chem, Inc. has seen earnings per share (EPS) move in a favourable direction by 1.3% each year (using a line of best fit). In the last year, its revenue is down 3.5%.

I would prefer it if there was revenue growth, but it is good to see EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

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

With a total shareholder return of 31% over three years, Ocean Bio-Chem, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Ocean Bio-Chem, Inc. is currently paying its CEO below what is normal for companies of its size.