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How Should Investors Feel About CompX International Inc.'s (NYSEMKT:CIX) CEO Pay?

Simply Wall St

Scott James has been the CEO of CompX International Inc. (NYSEMKT:CIX) since 2017. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for CompX International

How Does Scott James's Compensation Compare With Similar Sized Companies?

According to our data, CompX International Inc. has a market capitalization of US$177m, and paid its CEO total annual compensation worth US$1.0m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$424k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.

That means Scott James receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at CompX International has changed over time.

AMEX:CIX CEO Compensation, December 31st 2019

Is CompX International Inc. Growing?

On average over the last three years, CompX International Inc. has grown earnings per share (EPS) by 16% each year (using a line of best fit). It achieved revenue growth of 5.2% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has CompX International Inc. Been A Good Investment?

With a three year total loss of 7.2%, CompX International Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Scott James is paid around what is normal the leaders of comparable size companies.

We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CompX International (free visualization of insider trades).

Important note: CompX International 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.

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.