Daniel Jones has been the CEO of Encore Wire Corporation (NASDAQ:WIRE) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Daniel Jones's Compensation Compare With Similar Sized Companies?
Our data indicates that Encore Wire Corporation is worth US$1.3b, and total annual CEO compensation is US$2.6m. (This figure is for the year to December 2018). We note that's an increase of 23% above last year. While we always look at total compensation first, we note that the salary component is less, at US$850k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.6m.
That means Daniel Jones receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Encore Wire has changed over time.
Is Encore Wire Corporation Growing?
Encore Wire Corporation has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Encore Wire Corporation Been A Good Investment?
Boasting a total shareholder return of 52% over three years, Encore Wire Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Daniel Jones is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Encore Wire 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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