Pat Lavelle has been the CEO of VOXX International Corporation (NASDAQ:VOXX) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Pat Lavelle’s Compensation Compare With Similar Sized Companies?
Our data indicates that VOXX International Corporation is worth US$122m, and total annual CEO compensation is US$2.9m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$295k.
Thus we can conclude that Pat Lavelle receives more in total compensation than the median of a group of companies in the same market, and of similar size to VOXX International Corporation. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at VOXX International, below.
Is VOXX International Corporation Growing?
Over the last three years VOXX International Corporation has grown its earnings per share (EPS) by an average of 12% per year. In the last year, its revenue is down -4.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has VOXX International Corporation Been A Good Investment?
With a three year total loss of 9.2%, VOXX International Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by VOXX International Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if VOXX International insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.