How Much Does Frequency Electronics' (NASDAQ:FEIM) CEO Make?
Stan Sloane has been the CEO of Frequency Electronics, Inc. (NASDAQ:FEIM) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Frequency Electronics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Frequency Electronics
How Does Total Compensation For Stan Sloane Compare With Other Companies In The Industry?
According to our data, Frequency Electronics, Inc. has a market capitalization of US$102m, and paid its CEO total annual compensation worth US$671k over the year to April 2020. That's a notable increase of 28% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$325k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$429k. Accordingly, our analysis reveals that Frequency Electronics, Inc. pays Stan Sloane north of the industry median. Moreover, Stan Sloane also holds US$332k worth of Frequency Electronics stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$325k | US$325k | 48% |
Other | US$346k | US$197k | 52% |
Total Compensation | US$671k | US$522k | 100% |
Speaking on an industry level, nearly 33% of total compensation represents salary, while the remainder of 67% is other remuneration. Frequency Electronics pays out 48% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Frequency Electronics, Inc.'s Growth
Frequency Electronics, Inc. has seen its earnings per share (EPS) increase by 31% a year over the past three years. In the last year, its revenue is down 2.4%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Frequency Electronics, Inc. Been A Good Investment?
Frequency Electronics, Inc. has generated a total shareholder return of 16% over three years, so most shareholders would 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.
To Conclude...
As we touched on above, Frequency Electronics, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed us with its EPS growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the high CEO pay, given the good EPS growth.
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. In our study, we found 2 warning signs for Frequency Electronics you should be aware of, and 1 of them is concerning.
Switching gears from Frequency Electronics, 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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