U.S. markets open in 7 hours 37 minutes
  • S&P Futures

    4,617.75
    +27.75 (+0.60%)
     
  • Dow Futures

    35,394.00
    +182.00 (+0.52%)
     
  • Nasdaq Futures

    15,962.00
    +119.25 (+0.75%)
     
  • Russell 2000 Futures

    2,222.40
    +18.80 (+0.85%)
     
  • Crude Oil

    70.49
    +1.00 (+1.44%)
     
  • Gold

    1,781.60
    +2.10 (+0.12%)
     
  • Silver

    22.42
    +0.16 (+0.73%)
     
  • EUR/USD

    1.1297
    +0.0010 (+0.09%)
     
  • 10-Yr Bond

    1.4340
    0.0000 (0.00%)
     
  • Vix

    27.18
    -3.49 (-11.38%)
     
  • GBP/USD

    1.3287
    +0.0026 (+0.20%)
     
  • USD/JPY

    113.7000
    +0.2100 (+0.19%)
     
  • BTC-USD

    51,160.35
    +2,794.79 (+5.78%)
     
  • CMC Crypto 200

    1,320.47
    +60.31 (+4.79%)
     
  • FTSE 100

    7,232.28
    +109.96 (+1.54%)
     
  • Nikkei 225

    28,455.60
    +528.23 (+1.89%)
     

How Should Investors Feel About VOXX International's (NASDAQ:VOXX) CEO Remuneration?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Pat Lavelle became the CEO of VOXX International Corporation (NASDAQ:VOXX) in 2005, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for VOXX International

How Does Total Compensation For Pat Lavelle Compare With Other Companies In The Industry?

According to our data, VOXX International Corporation has a market capitalization of US$315m, and paid its CEO total annual compensation worth US$2.0m over the year to February 2020. We note that's a decrease of 32% compared to last year. In particular, the salary of US$1.00m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$2.1m. This suggests that VOXX International remunerates its CEO largely in line with the industry average. Moreover, Pat Lavelle also holds US$4.3m worth of VOXX International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2018

Proportion (2020)

Salary

US$1.0m

US$1.0m

51%

Other

US$971k

US$1.9m

49%

Total Compensation

US$2.0m

US$2.9m

100%

On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. It's interesting to note that VOXX International pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

A Look at VOXX International Corporation's Growth Numbers

VOXX International Corporation has reduced its earnings per share by 42% a year over the last three years. It saw its revenue drop 2.2% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has VOXX International Corporation Been A Good Investment?

We think that the total shareholder return of 133%, over three years, would leave most VOXX International Corporation 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.

To Conclude...

As previously discussed, Pat is compensated close to the median for companies of its size, and which belong to the same industry. Some investors may take issue with this, especially considering shrinking EPS for the past three years. But on the bright side, shareholder returns have moved northward during the same period. We're not saying CEO compensation is too generous, but shareholders will probably want to see an increase in EPS before agreeing the business should pay any more.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for VOXX International (1 is a bit concerning!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.