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Joe Puishys became the CEO of Apogee Enterprises, Inc. (NASDAQ:APOG) in 2011. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Joe Puishys's Compensation Compare With Similar Sized Companies?
According to our data, Apogee Enterprises, Inc. has a market capitalization of US$989m, and pays its CEO total annual compensation worth US$2.3m. (This number is for the twelve months until March 2019). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at US$935k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
That means Joe Puishys receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Apogee Enterprises has changed from year to year.
Is Apogee Enterprises, Inc. Growing?
Over the last three years Apogee Enterprises, Inc. has shrunk its earnings per share by an average of 1.3% per year (measured with a line of best fit). Its revenue is up 5.8% over last year.
In the last three years the company has failed to grow earnings per s. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Apogee Enterprises, Inc. Been A Good Investment?
Given the total loss of 15% over three years, many shareholders in Apogee Enterprises, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Joe Puishys is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Apogee Enterprises shares (free trial).
Important note: Apogee Enterprises may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.