Lasse Petterson became the CEO of Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) in 2017, 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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Great Lakes Dredge & Dock

How Does Total Compensation For Lasse Petterson Compare With Other Companies In The Industry?

According to our data, Great Lakes Dredge & Dock Corporation has a market capitalization of US$560m, and paid its CEO total annual compensation worth US$3.8m over the year to December 2019. We note that's an increase of 17% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$700k.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$3.7m. So it looks like Great Lakes Dredge & Dock compensates Lasse Petterson in line with the median for the industry. Moreover, Lasse Petterson also holds US$5.5m worth of Great Lakes Dredge & Dock stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. Our data reveals that Great Lakes Dredge & Dock allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Great Lakes Dredge & Dock Corporation's Growth

Great Lakes Dredge & Dock Corporation's earnings per share (EPS) grew 106% per year over the last three years. It saw its revenue drop 1.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Great Lakes Dredge & Dock Corporation Been A Good Investment?

We think that the total shareholder return of 158%, over three years, would leave most Great Lakes Dredge & Dock Corporation 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.

In Summary...

As we noted earlier, Great Lakes Dredge & Dock pays its CEO in line with similar-sized companies belonging to the same industry. Investors would surely be happy to see that returns have been great, and that earnings per share are up. Indeed, many might consider that Lasse is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Great Lakes Dredge & Dock (1 can't be ignored!) that you should be aware of before investing here.

Switching gears from Great Lakes Dredge & Dock, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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