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Rob Ruhlman has been the CEO of Preformed Line Products Company (NASDAQ:PLPC) since 2000. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Rob Ruhlman's Compensation Compare With Similar Sized Companies?
Our data indicates that Preformed Line Products Company is worth US$277m, and total annual CEO compensation is US$4.3m. (This number is for the twelve months until December 2018). That's just a smallish increase of 2.9% on last year. While we always look at total compensation first, we note that the salary component is less, at US$867k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.0m.
Thus we can conclude that Rob Ruhlman receives more in total compensation than the median of a group of companies in the same market, and of similar size to Preformed Line Products Company. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Preformed Line Products has changed over time.
Is Preformed Line Products Company Growing?
Preformed Line Products Company has increased its earnings per share (EPS) by an average of 35% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% 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. 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 Preformed Line Products Company Been A Good Investment?
Most shareholders would probably be pleased with Preformed Line Products Company for providing a total return of 35% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Preformed Line Products Company, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Preformed Line Products (free visualization of insider trades).
Important note: Preformed Line Products 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 firstname.lastname@example.org. 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.