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Dickerson Wright became the CEO of NV5 Global, Inc. (NASDAQ:NVEE) in 2011, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for NV5 Global.
Comparing NV5 Global, Inc.'s CEO Compensation With the industry
According to our data, NV5 Global, Inc. has a market capitalization of US$653m, and paid its CEO total annual compensation worth US$1.9m over the year to December 2019. We note that's an increase of 22% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$574k.
On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$2.3m. This suggests that NV5 Global remunerates its CEO largely in line with the industry average. Moreover, Dickerson Wright also holds US$97m worth of NV5 Global stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. NV5 Global is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
NV5 Global, Inc.'s Growth
Over the past three years, NV5 Global, Inc. has seen its earnings per share (EPS) grow by 3.9% per year. Its revenue is up 27% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has NV5 Global, Inc. Been A Good Investment?
Given the total shareholder loss of 3.7% over three years, many shareholders in NV5 Global, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, NV5 Global pays its CEO in line with similar-sized companies belonging to the same industry. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Dickerson deserves a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 5 warning signs for NV5 Global that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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