Pete Knapper became the CEO of SIFCO Industries Inc (NYSEMKT:SIF) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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 Pete Knapper’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that SIFCO Industries Inc has a market cap of US$26m, and is paying total annual CEO compensation of US$704k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$350k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$295k.
As you can see, Pete Knapper is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SIFCO Industries Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at SIFCO Industries has changed over time.
Is SIFCO Industries Inc Growing?
SIFCO Industries Inc has reduced its earnings per share by an average of 40% a year, over the last three years. Its revenue is down -12% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
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 SIFCO Industries Inc Been A Good Investment?
Given the total loss of 64% over three years, many shareholders in SIFCO 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.
We compared total CEO remuneration at SIFCO Industries Inc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if SIFCO Industries insiders are buying or selling shares.
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.