How Much Did American Woodmark Corporation's (NASDAQ:AMWD) CEO Pocket Last Year?
S. Dunston became the CEO of American Woodmark Corporation (NASDAQ:AMWD) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for American Woodmark
How Does S. Dunston's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that American Woodmark Corporation has a market cap of US$1.9b, and reported total annual CEO compensation of US$3.0m for the year to April 2019. While we always look at total compensation first, we note that the salary component is less, at US$792k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.0m.
So S. Dunston is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at American Woodmark has changed over time.
Is American Woodmark Corporation Growing?
On average over the last three years, American Woodmark Corporation has grown earnings per share (EPS) by 6.7% each year (using a line of best fit). It achieved revenue growth of 6.1% over the last year.
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 American Woodmark Corporation Been A Good Investment?
Boasting a total shareholder return of 49% over three years, American Woodmark Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
S. Dunston is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling American Woodmark (free visualization of insider trades).
If you want to buy a stock that is better than American Woodmark, this free list of high return, low debt companies is a great place to look.
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.
