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. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Doug McCrosson's Compensation Compare With Similar Sized Companies?
Our data indicates that CPI Aerostructures, Inc. is worth US$92m, and total annual CEO compensation is US$799k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$366k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$484k.
It would therefore appear that CPI Aerostructures, Inc. pays Doug McCrosson 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. 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, 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 47% each year (using a line of best fit). Its revenue is up 14% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. 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?
CPI Aerostructures, Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. 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 total CEO remuneration at CPI Aerostructures, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. 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.
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.