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Is Espey Mfg. & Electronics Corp.'s (NYSEMKT:ESP) CEO Paid Enough Relative To Peers?

Simply Wall St

Pat Enright became the CEO of Espey Mfg. & Electronics Corp. (NYSEMKT:ESP) in 2015. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Espey Mfg. & Electronics

How Does Pat Enright's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Espey Mfg. & Electronics Corp. has a market cap of US$50m, and reported total annual CEO compensation of US$509k for the year to June 2019. That's a notable increase of 32% on last year. While we always look at total compensation first, we note that the salary component is less, at US$259k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$509k.

That means Pat Enright receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Espey Mfg. & Electronics has changed from year to year.

AMEX:ESP CEO Compensation, December 5th 2019
AMEX:ESP CEO Compensation, December 5th 2019

Is Espey Mfg. & Electronics Corp. Growing?

On average over the last three years, Espey Mfg. & Electronics Corp. has grown earnings per share (EPS) by 1.8% each year (using a line of best fit). In the last year, its revenue is up 2.1%.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Espey Mfg. & Electronics Corp. Been A Good Investment?

With a three year total loss of 10%, Espey Mfg. & Electronics Corp. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Pat Enright is close enough to the median pay for a CEO of a similar sized company .

We would like to see somewhat stronger per share growth. And we think the shareholder returns - over three years - have been underwhelming. This contrasts with the growth in CEO remuneration. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Espey Mfg. & Electronics.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.