Why Standex International Corporation's (NYSE:SXI) CEO Pay Matters To You
In 2014 David Dunbar was appointed CEO of Standex International Corporation (NYSE:SXI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Standex International
How Does David Dunbar's Compensation Compare With Similar Sized Companies?
Our data indicates that Standex International Corporation is worth US$856m, and total annual CEO compensation is US$3.4m. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$797k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
So David Dunbar is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Standex International, below.
Is Standex International Corporation Growing?
Over the last three years Standex International Corporation has shrunk its earnings per share by an average of 2.3% per year (measured with a line of best fit). It achieved revenue growth of 2.7% over the last year.
In the last three years the company has failed to grow earnings per share. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Standex International Corporation Been A Good Investment?
Since shareholders would have lost about 18% over three years, some Standex International Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
David Dunbar is paid around what is normal the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Shareholders may want to check for free if Standex International insiders are buying or selling shares.
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.
