Here's What We Think About Powell Industries, Inc.'s (NASDAQ:POWL) CEO Pay
Brett Cope has been the CEO of Powell Industries, Inc. (NASDAQ:POWL) since 2016. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Powell Industries
How Does Brett Cope's Compensation Compare With Similar Sized Companies?
According to our data, Powell Industries, Inc. has a market capitalization of US$585m, and paid its CEO total annual compensation worth US$1.9m over the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at US$495k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.
So Brett Cope receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Powell Industries has changed over time.
Is Powell Industries, Inc. Growing?
On average over the last three years, Powell Industries, Inc. has shrunk earnings per share by 32% each year (measured with a line of best fit). In the last year, its revenue is up 15%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Powell Industries, Inc. Been A Good Investment?
I think that the total shareholder return of 40%, over three years, would leave most Powell Industries, Inc. shareholders smiling. 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.
In Summary...
Brett Cope is paid around the same as most CEOs of similar size companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Shareholders may want to check for free if Powell Industries insiders are buying or selling shares.
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.
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