Increases to CEO Compensation Might Be Put On Hold For Now at Cooper-Standard Holdings Inc. (NYSE:CPS)

Key Insights

• Cooper-Standard Holdings to hold its Annual General Meeting on 15th of May
• Total pay for CEO Jeff Edwards includes US$1.04m salary
• Total compensation is 206% above industry average
• Over the past three years, Cooper-Standard Holdings' EPS grew by 42% and over the past three years, the total shareholder return was 371%

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Under the guidance of CEO Jeff Edwards, Cooper-Standard Holdings Inc. (NYSE:CPS) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Cooper-Standard Holdings

How Does Total Compensation For Jeff Edwards Compare With Other Companies In The Industry?

Our data indicates that Cooper-Standard Holdings Inc. has a market capitalization of US$440m, and total annual CEO compensation was reported as US$8.7m for the year to December 2024. Notably, that's an increase of 14% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

On examining similar-sized companies in the American Auto Components industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$2.8m. Hence, we can conclude that Jeff Edwards is remunerated higher than the industry median. Furthermore, Jeff Edwards directly owns US$9.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$1.0m	12%
Other	US$7.7m	US$6.6m	88%
Total Compensation	US$8.7m	US$7.6m	100%

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Cooper-Standard Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Cooper-Standard Holdings Inc.'s Growth

Cooper-Standard Holdings Inc.'s earnings per share (EPS) grew 42% per year over the last three years. In the last year, its revenue is down 3.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Cooper-Standard Holdings Inc. Been A Good Investment?

We think that the total shareholder return of 371%, over three years, would leave most Cooper-Standard Holdings Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Cooper-Standard Holdings (2 can't be ignored!) that you should be aware of before investing here.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.