Is Apogee Enterprises Inc’s (NASDAQ:APOG) CEO Paid Enough To Stay Motivated?
Joe Puishys became the CEO of Apogee Enterprises Inc (NASDAQ:APOG) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Apogee Enterprises
How Does Joe Puishys’s Compensation Compare With Similar Sized Companies?
Our data indicates that Apogee Enterprises Inc is worth US$1.1b, and total annual CEO compensation is US$4m. That’s less than last year. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2m.
Thus we can conclude that Joe Puishys receives more in total compensation than the median of a group of companies in the same market, and of similar size to Apogee Enterprises Inc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Apogee Enterprises has changed over time.
Is Apogee Enterprises Inc Growing?
Apogee Enterprises Inc has increased its earnings per share (EPS) by an average of 11% a year, over the last three years Its revenue is up 17% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Apogee Enterprises Inc Been A Good Investment?
With a three year total loss of 23%, Apogee Enterprises Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Apogee Enterprises Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Apogee Enterprises Inc shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
