Brian Shore has been the CEO of Park Aerospace Corp. (NYSE:PKE) since 1996. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Brian Shore's Compensation Compare With Similar Sized Companies?
Our data indicates that Park Aerospace Corp. is worth US$352m, and total annual CEO compensation is US$356k. (This number is for the twelve months until March 2019). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$255k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Park Aerospace has changed over time.
Is Park Aerospace Corp. Growing?
On average over the last three years, Park Aerospace Corp. has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Park Aerospace Corp. Been A Good Investment?
I think that the total shareholder return of 61%, over three years, would leave most Park Aerospace Corp. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Park Aerospace Corp. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Brian Shore deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying Park Aerospace shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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