Sypris Solutions, Inc.'s (NASDAQ:SYPR) CEO Looks Like They Deserve Their Pay Packet

It would be hard to discount the role that CEO Jeffrey Gill has played in delivering the impressive results at Sypris Solutions, Inc. (NASDAQ:SYPR) recently. Coming up to the next AGM on 11 May 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Sypris Solutions

Comparing Sypris Solutions, Inc.'s CEO Compensation With the industry

According to our data, Sypris Solutions, Inc. has a market capitalization of US$80m, and paid its CEO total annual compensation worth US$555k over the year to December 2020. That's a notable decrease of 13% on last year. In particular, the salary of US$386.5k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$538k. So it looks like Sypris Solutions compensates Jeffrey Gill in line with the median for the industry. Furthermore, Jeffrey Gill directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$386k	US$495k	70%
Other	US$168k	US$140k	30%
Total Compensation	US$555k	US$635k	100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. According to our research, Sypris Solutions has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Sypris Solutions, Inc.'s Growth

Over the past three years, Sypris Solutions, Inc. has seen its earnings per share (EPS) grow by 75% per year. In the last year, its revenue is down 6.3%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sypris Solutions, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Sypris Solutions, Inc. for providing a total return of 170% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for Sypris Solutions that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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