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This article will reflect on the compensation paid to Scott James who has served as CEO of CompX International Inc. (NYSEMKT:CIX) since 2017. This analysis will also assess whether CompX International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing CompX International Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that CompX International Inc. has a market capitalization of US$162m, and reported total annual CEO compensation of US$1.1m for the year to December 2019. That's a modest increase of 4.9% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$474k.
On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$3.4m. Accordingly, CompX International pays its CEO under the industry median.
On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that CompX International pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at CompX International Inc.'s Growth Numbers
CompX International Inc. has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 3.6% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has CompX International Inc. Been A Good Investment?
Given the total shareholder loss of 8.4% over three years, many shareholders in CompX International Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, CompX International Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However we must not forget that the EPS growth has been very strong over three years. It's tough to criticize CEO compensation when the per-share earnings movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for CompX International that investors should be aware of in a dynamic business environment.
Switching gears from CompX International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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