In 2009 Dickerson Wright was appointed CEO of NV5 Global, Inc. (NASDAQ:NVEE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Dickerson Wright's Compensation Compare With Similar Sized Companies?
Our data indicates that NV5 Global, Inc. is worth US$825m, and total annual CEO compensation is US$1.5m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$543k. 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$2.7m.
Most shareholders would consider it a positive that Dickerson Wright takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at NV5 Global has changed from year to year.
Is NV5 Global, Inc. Growing?
Over the last three years NV5 Global, Inc. has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). It achieved revenue growth of 21% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 NV5 Global, Inc. Been A Good Investment?
Most shareholders would probably be pleased with NV5 Global, Inc. for providing a total return of 89% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that NV5 Global, Inc. remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Dickerson Wright deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling NV5 Global shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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