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John Elliott has been the CEO of Gencor Industries, Inc. (NASDAQ:GENC) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Elliott's Compensation Compare With Similar Sized Companies?
Our data indicates that Gencor Industries, Inc. is worth US$190m, and total annual CEO compensation is US$451k. (This is based on the year to September 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$450k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.
A first glance this seems like a real positive for shareholders, since John Elliott is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Gencor Industries, below.
Is Gencor Industries, Inc. Growing?
Over the last three years Gencor Industries, Inc. has grown its earnings per share (EPS) by an average of 38% per year (using a line of best fit). In the last year, its revenue is down -3.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Gencor Industries, Inc. Been A Good Investment?
With a total shareholder return of 17% over three years, Gencor Industries, Inc. shareholders would, in general, 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.
Gencor Industries, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest John Elliott is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Gencor Industries.
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.
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.