Key Insights

• Gulf Island Fabrication to hold its Annual General Meeting on 15th of May
• CEO Richard Heo's total compensation includes salary of US$487.0k
• Total compensation is similar to the industry average
• Gulf Island Fabrication's EPS grew by 37% over the past three years while total shareholder return over the past three years was 71%

The performance at Gulf Island Fabrication, Inc. (NASDAQ:GIFI) has been quite strong recently and CEO Richard Heo has played a role in it. Coming up to the next AGM on 15th of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Comparing Gulf Island Fabrication, Inc.'s CEO Compensation With The Industry

Our data indicates that Gulf Island Fabrication, Inc. has a market capitalization of US$112m, and total annual CEO compensation was reported as US$2.0m for the year to December 2024. That's a modest increase of 7.7% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$487k.

In comparison with other companies in the American Energy Services industry with market capitalizations under US$200m, the reported median total CEO compensation was US$2.0m. So it looks like Gulf Island Fabrication compensates Richard Heo in line with the median for the industry. Furthermore, Richard Heo directly owns US$4.8m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Gulf Island Fabrication pays out 24% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Gulf Island Fabrication, Inc.'s Growth

Over the past three years, Gulf Island Fabrication, Inc. has seen its earnings per share (EPS) grow by 37% per year. Its revenue is up 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Gulf Island Fabrication, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Gulf Island Fabrication, Inc. for providing a total return of 71% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Gulf Island Fabrication 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.