How Much Is ORBCOMM Inc. (NASDAQ:ORBC) CEO Getting Paid?

This article will reflect on the compensation paid to Marc Eisenberg who has served as CEO of ORBCOMM Inc. (NASDAQ:ORBC) since 2008. 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 ORBCOMM

How Does Total Compensation For Marc Eisenberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that ORBCOMM Inc. has a market capitalization of US$300m, and reported total annual CEO compensation of US$1.9m for the year to December 2019. Notably, that's a decrease of 28% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$525k.

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$1.9m. From this we gather that Marc Eisenberg is paid around the median for CEOs in the industry. What's more, Marc Eisenberg holds US$2.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 28% of total compensation represents salary and 72% is other remuneration. There isn't a significant difference between ORBCOMM and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ORBCOMM Inc.'s Growth

ORBCOMM Inc.'s earnings per share (EPS) grew 44% per year over the last three years. It saw its revenue drop 3.2% over the 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ORBCOMM Inc. Been A Good Investment?

Since shareholders would have lost about 63% over three years, some ORBCOMM Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, ORBCOMM pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. Overall, we wouldn't say Marc is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for ORBCOMM that investors should be aware of in a dynamic business environment.

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.

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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