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Dennis Sadlowski became the CEO of CECO Environmental Corp. (NASDAQ:CECE) in 2017. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dennis Sadlowski's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CECO Environmental Corp. has a market cap of US$326m, and is paying total annual CEO compensation of US$2.1m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$575k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
That means Dennis Sadlowski receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at CECO Environmental has changed over time.
Is CECO Environmental Corp. Growing?
Over the last three years CECO Environmental Corp. has grown its earnings per share (EPS) by an average of 4.4% per year (using a line of best fit). Its revenue is up 6.9% over last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has CECO Environmental Corp. Been A Good Investment?
With a total shareholder return of 4.7% over three years, CECO Environmental Corp. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
Dennis Sadlowski is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While the CEO may not be underpaid, we don't think the pay is too generous either. Shareholders may want to check for free if CECO Environmental insiders are buying or selling shares.
If you want to buy a stock that is better than CECO Environmental, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.