Yahoo Finance How Much is REX American Resources Corporation's (NYSE:REX) CEO Getting Paid?
Zafar Rizvi became the CEO of REX American Resources Corporation (NYSE:REX) in 2015. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for REX American Resources
How Does Zafar Rizvi's Compensation Compare With Similar Sized Companies?
Our data indicates that REX American Resources Corporation is worth US$480m, and total annual CEO compensation is US$879k. (This figure is for the year to January 2019). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$225k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.
A first glance this seems like a real positive for shareholders, since Zafar Rizvi is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at REX American Resources has changed over time.
Is REX American Resources Corporation Growing?
REX American Resources Corporation has increased its earnings per share (EPS) by an average of 6.5% a year, over the last three years (using a line of best fit). It saw its revenue drop -6.8% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has REX American Resources Corporation Been A Good Investment?
With a three year total loss of 12%, REX American Resources Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
REX American Resources Corporation is currently paying its CEO below what is normal for companies of its size.
Zafar Rizvi receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. So while shareholders shouldn't be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. Whatever your view on compensation, you might want to check if insiders are buying or selling REX American Resources shares (free trial).
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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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.
