Is CPI Aerostructures, Inc.'s (NYSEMKT:CVU) CEO Paid At A Competitive Rate?
In 2014 Doug McCrosson was appointed CEO of CPI Aerostructures, Inc. (NYSEMKT:CVU). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for CPI Aerostructures
How Does Doug McCrosson's Compensation Compare With Similar Sized Companies?
According to our data, CPI Aerostructures, Inc. has a market capitalization of US$77m, and paid its CEO total annual compensation worth US$799k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$366k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$523k.
As you can see, Doug McCrosson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CPI Aerostructures, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at CPI Aerostructures has changed over time.
Is CPI Aerostructures, Inc. Growing?
On average over the last three years, CPI Aerostructures, Inc. has grown earnings per share (EPS) by 27% each year (using a line of best fit). It achieved revenue growth of 24% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has CPI Aerostructures, Inc. Been A Good Investment?
With a three year total loss of 24%, CPI Aerostructures, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at CPI Aerostructures, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. 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. Shareholders may want to check for free if CPI Aerostructures insiders are buying or selling shares.
If you want to buy a stock that is better than CPI Aerostructures, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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