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John Morrissey has been the CEO of Chicago Rivet & Machine Co. (NYSEMKT:CVR) since 1981. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
How Does John Morrissey's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Chicago Rivet & Machine Co. has a market cap of US$28m, and is paying total annual CEO compensation of US$409k. (This is based on the year to December 2018). That's a modest increase of 3.8% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$324k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$437k.
So John Morrissey 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.
The graphic below shows how CEO compensation at Chicago Rivet & Machine has changed from year to year.
Is Chicago Rivet & Machine Co. Growing?
Over the last three years Chicago Rivet & Machine Co. has grown its earnings per share (EPS) by an average of 6.2% per year (using a line of best fit). In the last year, its revenue is up 3.9%.
I'm not particularly impressed by the 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. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Chicago Rivet & Machine Co. Been A Good Investment?
With a total shareholder return of 24% over three years, Chicago Rivet & Machine Co. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
John Morrissey is paid around what is normal the leaders of comparable size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. So you may want to check if insiders are buying Chicago Rivet & Machine shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 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.