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Jeffrey Gill has been the CEO of Sypris Solutions, Inc. (NASDAQ:SYPR) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Sypris Solutions pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Jeffrey Gill Compare With Other Companies In The Industry?
Our data indicates that Sypris Solutions, Inc. has a market capitalization of US$23m, and total annual CEO compensation was reported as US$635k for the year to December 2019. That's a slight decrease of 5.5% on the prior year. We note that the salary portion, which stands at US$495.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$562k. From this we gather that Jeffrey Gill is paid around the median for CEOs in the industry. Furthermore, Jeffrey Gill directly owns US$3.2m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. According to our research, Sypris Solutions has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Sypris Solutions, Inc.'s Growth Numbers
Over the past three years, Sypris Solutions, Inc. has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is down 6.4%.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Sypris Solutions, Inc. Been A Good Investment?
With a three year total loss of 23% for the shareholders, Sypris Solutions, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, Sypris Solutions pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Sypris Solutions that you should be aware of before investing.
Switching gears from Sypris Solutions, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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