U.S. markets closed
  • S&P 500

    3,841.94
    +73.47 (+1.95%)
     
  • Dow 30

    31,496.30
    +572.16 (+1.85%)
     
  • Nasdaq

    12,920.15
    +196.68 (+1.55%)
     
  • Russell 2000

    2,192.21
    +45.29 (+2.11%)
     
  • Crude Oil

    66.28
    +2.45 (+3.84%)
     
  • Gold

    1,698.20
    -2.50 (-0.15%)
     
  • Silver

    25.30
    -0.17 (-0.65%)
     
  • EUR/USD

    1.1916
    -0.0063 (-0.52%)
     
  • 10-Yr Bond

    1.5540
    +0.0040 (+0.26%)
     
  • GBP/USD

    1.3834
    -0.0060 (-0.43%)
     
  • USD/JPY

    108.3600
    +0.3840 (+0.36%)
     
  • BTC-USD

    50,780.78
    +1,808.12 (+3.69%)
     
  • CMC Crypto 200

    982.93
    +39.75 (+4.21%)
     
  • FTSE 100

    6,630.52
    -20.36 (-0.31%)
     
  • Nikkei 225

    28,864.32
    -65.78 (-0.23%)
     

Does General Finance's (NASDAQ:GFN) CEO Salary Compare Well With Industry Peers?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Jody Miller has been the CEO of General Finance Corporation (NASDAQ:GFN) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether General Finance pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for General Finance

Comparing General Finance Corporation's CEO Compensation With the industry

At the time of writing, our data shows that General Finance Corporation has a market capitalization of US$198m, and reported total annual CEO compensation of US$1.2m for the year to June 2020. That's just a smallish increase of 4.6% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$425k.

On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.2m. From this we gather that Jody Miller is paid around the median for CEOs in the industry. Moreover, Jody Miller also holds US$3.2m worth of General Finance stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

US$425k

US$400k

35%

Other

US$805k

US$775k

65%

Total Compensation

US$1.2m

US$1.2m

100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. According to our research, General Finance has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

General Finance Corporation's Growth

Over the past three years, General Finance Corporation has seen its earnings per share (EPS) grow by 44% per year. Its revenue is down 5.7% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has General Finance Corporation Been A Good Investment?

General Finance Corporation has served shareholders reasonably well, with a total return of 21% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we touched on above, General Finance Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in General Finance we think you should know about.

Switching gears from General Finance, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.