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Andy Gordon has been the CEO of Coffee Holding Co Inc (NASDAQ:JVA) since 1997. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Andy Gordon’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Coffee Holding Co Inc has a market cap of US$25m, and is paying total annual CEO compensation of US$436k. That’s just a smallish increase of 7.5% on last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$292k.
It would therefore appear that Coffee Holding Co Inc pays Andy Gordon more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Coffee Holding has changed over time.
Is Coffee Holding Co Inc Growing?
Coffee Holding Co Inc has increased its earnings per share (EPS) by an average of 32% a year, over the last three years In the last year, its revenue is up 23%.
This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Coffee Holding Co Inc Been A Good Investment?
Coffee Holding Co Inc has not done too badly by shareholders, with a total return of 5.9%, over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by Coffee Holding Co Inc, 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.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Coffee Holding Co Inc (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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 firstname.lastname@example.org.