Tom Chubb became the CEO of Oxford Industries, Inc. (NYSE:OXM) in 2013. 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. This process should give us an idea about how appropriately the CEO is paid.
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How Does Tom Chubb's Compensation Compare With Similar Sized Companies?
According to our data, Oxford Industries, Inc. has a market capitalization of US$1.3b, and pays its CEO total annual compensation worth US$2.8m. (This is based on the year to February 2019). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$875k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.
A first glance this seems like a real positive for shareholders, since Tom Chubb is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Oxford Industries has changed over time.
Is Oxford Industries, Inc. Growing?
Oxford Industries, Inc. has increased its earnings per share (EPS) by an average of 7.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.0%.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Oxford Industries, Inc. Been A Good Investment?
With a total shareholder return of 26% over three years, Oxford Industries, Inc. 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.
Oxford Industries, Inc. is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Tom Chubb is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. So you may want to check if insiders are buying Oxford Industries shares with their own money (free access).
Important note: Oxford Industries 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.
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