In 2016 Koby Kobylinski was appointed CEO of Jason Industries, Inc. (NASDAQ:JASN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Koby Kobylinski's Compensation Compare With Similar Sized Companies?
According to our data, Jason Industries, Inc. has a market capitalization of US$7.9m, and paid its CEO total annual compensation worth US$2.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$719k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$496k.
As you can see, Koby Kobylinski is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Jason Industries, Inc. is paying too much. 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 Jason Industries has changed over time.
Is Jason Industries, Inc. Growing?
Jason Industries, Inc. has increased its earnings per share (EPS) by an average of 68% a year, over the last three years (using a line of best fit). Its revenue is down 12% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Jason Industries, Inc. Been A Good Investment?
Since shareholders would have lost about 87% over three years, some Jason Industries, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Jason Industries, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Jason Industries shares with their own money (free access).
Important note: Jason Industries may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.