In 2013 Tom Chubb was appointed CEO of Oxford Industries, Inc. (NYSE:OXM). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tom Chubb's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Oxford Industries, Inc. has a market cap of US$1.2b, and reported total annual CEO compensation of US$2.8m for the year to February 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$875k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.9m.
So Tom Chubb receives a similar amount to the median CEO pay, amongst 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 a visual representation of the CEO compensation at Oxford Industries, below.
Is Oxford Industries, Inc. Growing?
On average over the last three years, Oxford Industries, Inc. has grown earnings per share (EPS) by 8.9% each year (using a line of best fit). Its revenue is up 1.1% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Oxford Industries, Inc. Been A Good Investment?
Oxford Industries, Inc. has not done too badly by shareholders, with a total return of 4.1%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Tom Chubb is close enough to the median pay for a CEO of a similar sized company .
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. So you may want to check if insiders are buying Oxford Industries shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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