Yahoo Finance Here's Why It's Unlikely That LCI Industries' (NYSE:LCII) CEO Will See A Pay Rise This Year
Key Insights
LCI Industries' Annual General Meeting to take place on 16th of May
Total pay for CEO Jason Lippert includes US$1.16m salary
Total compensation is 39% above industry average
Over the past three years, LCI Industries' EPS fell by 23% and over the past three years, the total loss to shareholders 7.8%
Shareholders will probably not be too impressed with the underwhelming results at LCI Industries (NYSE:LCII) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 16th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for LCI Industries
Comparing LCI Industries' CEO Compensation With The Industry
Our data indicates that LCI Industries has a market capitalization of US$2.8b, and total annual CEO compensation was reported as US$8.6m for the year to December 2023. Notably, that's a decrease of 18% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.
In comparison with other companies in the American Auto Components industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$6.2m. Accordingly, our analysis reveals that LCI Industries pays Jason Lippert north of the industry median. Moreover, Jason Lippert also holds US$44m worth of LCI Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.2m | US$1.1m | 13% |
Other | US$7.5m | US$9.4m | 87% |
Total Compensation | US$8.6m | US$11m | 100% |
Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. LCI Industries is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
LCI Industries' Growth
Over the last three years, LCI Industries has shrunk its earnings per share by 23% per year. It saw its revenue drop 17% over the last year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has LCI Industries Been A Good Investment?
With a three year total loss of 7.8% for the shareholders, LCI Industries would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for LCI Industries that investors should be aware of in a dynamic business environment.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
