Increases to CEO Compensation Might Be Put On Hold For Now at Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD)

Key Insights

• Great Lakes Dredge & Dock to hold its Annual General Meeting on 8th of May
• CEO Lasse Petterson's total compensation includes salary of US$816.4k
• The overall pay is 44% above the industry average
• Great Lakes Dredge & Dock's three-year loss to shareholders was 37% while its EPS grew by 4.1% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Great Lakes Dredge & Dock. Read for free now.

The underwhelming share price performance of Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 8th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Great Lakes Dredge & Dock

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

At the time of writing, our data shows that Great Lakes Dredge & Dock Corporation has a market capitalization of US$612m, and reported total annual CEO compensation of US$4.6m for the year to December 2024. That's a notable increase of 42% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$816k.

For comparison, other companies in the American Construction industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.2m. Accordingly, our analysis reveals that Great Lakes Dredge & Dock Corporation pays Lasse Petterson north of the industry median. Furthermore, Lasse Petterson directly owns US$8.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$816k	US$785k	18%
Other	US$3.8m	US$2.4m	82%
Total Compensation	US$4.6m	US$3.2m	100%

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. There isn't a significant difference between Great Lakes Dredge & Dock 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.

Great Lakes Dredge & Dock Corporation's Growth

Over the past three years, Great Lakes Dredge & Dock Corporation has seen its earnings per share (EPS) grow by 4.1% per year. Its revenue is up 29% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

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

Few Great Lakes Dredge & Dock Corporation shareholders would feel satisfied with the return of -37% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Great Lakes Dredge & Dock that investors should think about before committing capital to this stock.

Important note: Great Lakes Dredge & Dock is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.