In 1996 Brian Shore was appointed CEO of Park Electrochemical Corp. (NYSE:PKE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
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How Does Brian Shore’s Compensation Compare With Similar Sized Companies?
Our data indicates that Park Electrochemical Corp. is worth US$455m, and total annual CEO compensation is US$358k. (This figure is for the year to 2018). Notably, the salary of US$358k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.5m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Park Electrochemical has changed over time.
Is Park Electrochemical Corp. Growing?
Over the last three years Park Electrochemical Corp. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). In the last year, its revenue is up 99%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Park Electrochemical Corp. Been A Good Investment?
Boasting a total shareholder return of 80% over three years, Park Electrochemical Corp. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Park Electrochemical Corp. is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Park Electrochemical (free visualization of insider trades).
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.