Ramzi Hermiz became the CEO of Shiloh Industries Inc (NASDAQ:SHLO) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
How Does Ramzi Hermiz’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Shiloh Industries Inc has a market cap of US$186m, and is paying total annual CEO compensation of US$2.5m. That’s a notable increase of 90% on last year. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$930k.
As you can see, Ramzi Hermiz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Shiloh Industries Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Shiloh Industries has changed over time.
Is Shiloh Industries Inc Growing?
Shiloh Industries Inc has increased its earnings per share (EPS) by an average of 27% a year, over the last three years In the last year, its revenue is up 4.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Shiloh Industries Inc Been A Good Investment?
Shiloh Industries Inc has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Shiloh Industries Inc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Shiloh Industries Inc.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.