Yahoo Finance How Much is W&T Offshore, Inc.'s (NYSE:WTI) CEO Getting Paid?
Tracy Krohn has been the CEO of W&T Offshore, Inc. (NYSE:WTI) since 1983. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
Check out our latest analysis for W&T Offshore
How Does Tracy Krohn's Compensation Compare With Similar Sized Companies?
Our data indicates that W&T Offshore, Inc. is worth US$365m, and total annual CEO compensation was reported as US$5.3m for the year to December 2019. That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$2.3m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where W&T Offshore stands. On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. So it seems like there isn't a significant difference between W&T Offshore and the broader market, in terms of salary allocation in the overall compensation package.
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 seen earnings per share (EPS) move in a positive direction by an average of 73% per year (using a line of best fit). Its revenue is down 8.0% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has W&T Offshore, Inc. Been A Good Investment?
W&T Offshore, Inc. has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount W&T Offshore, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Shifting gears from CEO pay for a second, we've spotted 5 warning signs for W&T Offshore you should be aware of, and 3 of them are potentially serious.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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