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In 2015 Terry Wise was appointed CEO of Forward Industries, Inc. (NASDAQ:FORD). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Terry Wise’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Forward Industries, Inc. has a market cap of US$16m, and is paying total annual CEO compensation of US$300k. (This number is for the twelve months until September 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$300k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$299k.
That means Terry Wise receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Forward Industries has changed from year to year.
Is Forward Industries, Inc. Growing?
Forward Industries, Inc. has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 56%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Forward Industries, Inc. Been A Good Investment?
With a total shareholder return of 17% over three years, Forward 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.
Terry Wise is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Forward Industries insiders are buying or selling shares.
Important note: Forward 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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.