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Is Shiloh Industries, Inc.'s (NASDAQ:SHLO) CEO Being Overpaid?

Simply Wall St

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Ramzi Hermiz has been the CEO of Shiloh Industries, Inc. (NASDAQ:SHLO) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Shiloh Industries

How Does Ramzi Hermiz's Compensation Compare With Similar Sized Companies?

Our data indicates that Shiloh Industries, Inc. is worth US$117m, and total annual CEO compensation is US$2.5m. (This is based on the year to October 2018). While we always look at total compensation first, we note that the salary component is less, at US$875k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$471k.

Thus we can conclude that Ramzi Hermiz receives more in total compensation than the median of a group of companies in the same market, and of similar size to Shiloh Industries, 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 Shiloh Industries has changed from year to year.

NasdaqGS:SHLO CEO Compensation, July 15th 2019

Is Shiloh Industries, Inc. Growing?

Shiloh Industries, Inc. has increased its earnings per share (EPS) by an average of 40% a year, over the last three years (using a line of best fit). Its revenue is up 5.7% over last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has Shiloh Industries, Inc. Been A Good Investment?

Given the total loss of 43% over three years, many shareholders in Shiloh Industries, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Shiloh Industries, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Shiloh Industries.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.