Our Take On Fox Factory Holding Corp’s (NASDAQ:FOXF) CEO Salary
Larry Enterline has been the CEO of Fox Factory Holding Corp (NASDAQ:FOXF) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for Fox Factory Holding
How Does Larry Enterline’s Compensation Compare With Similar Sized Companies?
Our data indicates that Fox Factory Holding Corp is worth US$2.4b, and total annual CEO compensation is US$6.5m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$750k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.9m.
As you can see, Larry Enterline is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Fox Factory Holding Corp is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Fox Factory Holding has changed from year to year.
Is Fox Factory Holding Corp Growing?
On average over the last three years, Fox Factory Holding Corp has grown earnings per share (EPS) by 33% each year. In the last year, its revenue is up 25%.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Fox Factory Holding Corp Been A Good Investment?
Boasting a total shareholder return of 229% over three years, Fox Factory Holding Corp has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared total CEO remuneration at Fox Factory Holding Corp with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. 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 Fox Factory Holding (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
