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Is PHI Inc (NASDAQ:PHII) Overpaying Its CEO?

Al Gonsoulin became the CEO of PHI Inc (NASDAQ:PHII) in 2004. 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.

See our latest analysis for PHI

How Does Al Gonsoulin’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that PHI Inc has a market cap of US$58m, and is paying total annual CEO compensation of US$4.9m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$650k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$293k.

Thus we can conclude that Al Gonsoulin receives more in total compensation than the median of a group of companies in the same market, and of similar size to PHI Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at PHI has changed from year to year.

NasdaqGS:PHII CEO Compensation December 4th 18

Is PHI Inc Growing?

On average over the last three years, PHI Inc has shrunk earnings per share by 52% each year. In the last year, its revenue is up 12%.

Sadly for shareholders, earnings per share are actually down, over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

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 PHI Inc Been A Good Investment?

With a three year total loss of 77%, PHI Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We examined the amount PHI Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PHI.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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 editorial-team@simplywallst.com.