John Elliott has been the CEO of Gencor Industries, Inc. (NASDAQ:GENC) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does John Elliott’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Gencor Industries, Inc. has a market cap of US$173m, and is paying total annual CEO compensation of US$451k. (This number is for the twelve months until September 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$450k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.
A first glance this seems like a real positive for shareholders, since John Elliott is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Gencor Industries, below.
Is Gencor Industries, Inc. Growing?
On average over the last three years, Gencor Industries, Inc. has grown earnings per share (EPS) by 38% each year (using a line of best fit). It saw its revenue drop -3.7% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Gencor Industries, Inc. Been A Good Investment?
Gencor Industries, Inc. has generated a total shareholder return of 21% 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.
Gencor Industries, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest John Elliott is overcompensated.
It’s great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Gencor Industries shares (free trial).
Important note: Gencor Industries may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.