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Does CSW Industrials, Inc.'s (NASDAQ:CSWI) CEO Pay Compare Well With Peers?

Simply Wall St

Joe Armes became the CEO of CSW Industrials, Inc. (NASDAQ:CSWI) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for CSW Industrials

How Does Joe Armes's Compensation Compare With Similar Sized Companies?

According to our data, CSW Industrials, Inc. has a market capitalization of US$938m, and paid its CEO total annual compensation worth US$3.6m over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$540k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$3.2m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 19% of total compensation out of all the companies we analysed, while other remuneration made up 81% of the pie. So it seems like there isn't a significant difference between CSW Industrials and the broader market, in terms of salary allocation in the overall compensation package.

That means Joe Armes receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at CSW Industrials has changed from year to year.

NasdaqGS:CSWI CEO Compensation March 29th 2020
NasdaqGS:CSWI CEO Compensation March 29th 2020

Is CSW Industrials, Inc. Growing?

CSW Industrials, Inc. has seen earnings per share (EPS) move positively by an average of 34% a year, over the last three years (using a line of best fit). Its revenue is up 11% 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 CSW Industrials, Inc. Been A Good Investment?

Most shareholders would probably be pleased with CSW Industrials, Inc. for providing a total return of 70% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Joe Armes is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shifting gears from CEO pay for a second, we've picked out 1 warning sign for CSW Industrials that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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. Thank you for reading.