Wilson Jones has been the CEO of Oshkosh Corporation (NYSE:OSK) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Wilson Jones’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Oshkosh Corporation has a market cap of US$4.7b, and is paying total annual CEO compensation of US$10m. That’s a notable increase of 46% on last year. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.
Thus we can conclude that Wilson Jones receives more in total compensation than the median of a group of companies in the same market, and of similar size to Oshkosh Corporation. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Oshkosh has changed over time.
Is Oshkosh Corporation Growing?
On average over the last three years, Oshkosh Corporation has grown earnings per share (EPS) by 30% each year. Its revenue is up 13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Oshkosh Corporation Been A Good Investment?
Most shareholders would probably be pleased with Oshkosh Corporation for providing a total return of 61% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We examined the amount Oshkosh Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Oshkosh Corporation shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.