In 2010 Ziv Shoshani was appointed CEO of Vishay Precision Group, Inc. (NYSE:VPG). 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Vishay Precision Group
How Does Ziv Shoshani’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Vishay Precision Group, Inc. has a market cap of US$403m, and is paying total annual CEO compensation of US$2.9m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$597k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.9m.
As you can see, Ziv Shoshani is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Vishay Precision Group, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Vishay Precision Group has changed from year to year.
Is Vishay Precision Group, Inc. Growing?
On average over the last three years, Vishay Precision Group, Inc. has grown earnings per share (EPS) by 75% each year (using a line of best fit). Its revenue is up 7.3% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Has Vishay Precision Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 94% over three years, Vishay Precision Group, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at Vishay Precision Group, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Vishay Precision Group (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.