In 1981 John Morrissey was appointed CEO of Chicago Rivet & Machine Co (NYSEMKT:CVR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does John Morrissey’s Compensation Compare With Similar Sized Companies?
According to our data, Chicago Rivet & Machine Co has a market capitalization of US$33m, and pays its CEO total annual compensation worth US$394k. That’s less than last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$292k.
As you can see, John Morrissey is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Chicago Rivet & Machine Co is paying too much. 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 a visual representation of the CEO compensation at Chicago Rivet & Machine, below.
Is Chicago Rivet & Machine Co Growing?
Chicago Rivet & Machine Co has increased its earnings per share (EPS) by an average of 8.3% a year, over the last three years In the last year, its revenue changed by just 0.3%.
I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Chicago Rivet & Machine Co Been A Good Investment?
I think that the total shareholder return of 47%, over three years, would leave most Chicago Rivet & Machine Co shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Chicago Rivet & Machine Co, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Chicago Rivet & Machine Co shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 firstname.lastname@example.org.