How Should Investors Feel About Marine Products Corporation's (NYSE:MPX) CEO Pay?
Richard Hubbell became the CEO of Marine Products Corporation (NYSE:MPX) in 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Marine Products
How Does Richard Hubbell's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Marine Products Corporation has a market cap of US$515m, and reported total annual CEO compensation of US$1.2m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$500k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
A first glance this seems like a real positive for shareholders, since Richard Hubbell is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Marine Products has changed from year to year.
Is Marine Products Corporation Growing?
On average over the last three years, Marine Products Corporation has grown earnings per share (EPS) by 25% each year (using a line of best fit). Its revenue is up 1.3% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Marine Products Corporation Been A Good Investment?
With a total shareholder return of 23% over three years, Marine Products Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
It looks like Marine Products Corporation pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Richard Hubbell is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Marine Products.
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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