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Jeffrey Gill became the CEO of Sypris Solutions, Inc. (NASDAQ:SYPR) in 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeffrey Gill's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sypris Solutions, Inc. has a market cap of US$17m, and is paying total annual CEO compensation of US$2.0m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$495k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$470k.
It would therefore appear that Sypris Solutions, Inc. pays Jeffrey Gill more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Sypris Solutions has changed over time.
Is Sypris Solutions, Inc. Growing?
Sypris Solutions, Inc. has increased its earnings per share (EPS) by an average of 8.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.2%.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sypris Solutions, Inc. Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in Sypris Solutions, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Sypris Solutions, Inc., 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.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Sypris Solutions shares (free trial).
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 firstname.lastname@example.org. 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.