Yahoo Finance Is SPX FLOW, Inc. (NYSE:FLOW) Excessively Paying Its CEO?
Marc Michael has been the CEO of SPX FLOW, Inc. (NYSE:FLOW) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
View our latest analysis for SPX FLOW
How Does Marc Michael's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that SPX FLOW, Inc. has a market cap of US$1.7b, and is paying total annual CEO compensation of US$4.9m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$868k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.0m.
So Marc Michael receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 a visual representation of the CEO compensation at SPX FLOW, below.
Is SPX FLOW, Inc. Growing?
On average over the last three years, SPX FLOW, Inc. has grown earnings per share (EPS) by 94% each year (using a line of best fit). In the last year, its revenue is up 4.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has SPX FLOW, Inc. Been A Good Investment?
Boasting a total shareholder return of 49% over three years, SPX FLOW, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Marc Michael is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SPX FLOW.
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 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.
