Here's Why Shareholders Will Not Be Complaining About CSW Industrials, Inc.'s (NASDAQ:CSWI) CEO Pay Packet

Key Insights

• CSW Industrials will host its Annual General Meeting on 15th of August
• Salary of US$800.0k is part of CEO Joe Armes's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, CSW Industrials' EPS grew by 30% and over the past three years, the total shareholder return was 138%

We have been pretty impressed with the performance at CSW Industrials, Inc. (NASDAQ:CSWI) recently and CEO Joe Armes deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 15th of August. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for CSW Industrials

Comparing CSW Industrials, Inc.'s CEO Compensation With The Industry

According to our data, CSW Industrials, Inc. has a market capitalization of US$4.7b, and paid its CEO total annual compensation worth US$6.0m over the year to March 2024. We note that's an increase of 39% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$800k.

In comparison with other companies in the American Building industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$6.0m. From this we gather that Joe Armes is paid around the median for CEOs in the industry. Furthermore, Joe Armes directly owns US$18m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$800k	US$700k	13%
Other	US$5.2m	US$3.6m	87%
Total Compensation	US$6.0m	US$4.3m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. There isn't a significant difference between CSW Industrials and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at CSW Industrials, Inc.'s Growth Numbers

Over the past three years, CSW Industrials, Inc. has seen its earnings per share (EPS) grow by 30% per year. It achieved revenue growth of 7.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CSW Industrials, Inc. Been A Good Investment?

We think that the total shareholder return of 138%, over three years, would leave most CSW Industrials, 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CSW Industrials (free visualization of insider trades).

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.