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Is VOXX International Corporation's (NASDAQ:VOXX) CEO Paid Enough Relative To Peers?

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Simply Wall St
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In 2005 Pat Lavelle was appointed CEO of VOXX International Corporation (NASDAQ:VOXX). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for VOXX International

How Does Pat Lavelle's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that VOXX International Corporation has a market cap of US$115m, and is paying total annual CEO compensation of US$1.4m. (This number is for the twelve months until February 2019). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$490k.

As you can see, Pat Lavelle is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean VOXX International Corporation is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at VOXX International has changed over time.

NasdaqGS:VOXX CEO Compensation, August 13th 2019
NasdaqGS:VOXX CEO Compensation, August 13th 2019

Is VOXX International Corporation Growing?

On average over the last three years, VOXX International Corporation has shrunk earnings per share by 89% each year (measured with a line of best fit). In the last year, its revenue is down -11%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has VOXX International Corporation Been A Good Investment?

I think that the total shareholder return of 60%, over three years, would leave most VOXX International Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We examined the amount VOXX International Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

However, we can't argue with the strong returns to shareholders, over the same time period. So on this analysis we'd stop short of criticizing the level of CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling VOXX International (free visualization of insider trades).

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.