Most Shareholders Will Probably Agree With IES Holdings, Inc.'s (NASDAQ:IESC) CEO Compensation

CEO Jeff Gendell has done a decent job of delivering relatively good performance at IES Holdings, Inc. (NASDAQ:IESC) recently. As shareholders go into the upcoming AGM on 23 February 2023, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for IES Holdings

Comparing IES Holdings, Inc.'s CEO Compensation With The Industry

According to our data, IES Holdings, Inc. has a market capitalization of US$851m, and paid its CEO total annual compensation worth US$2.2m over the year to September 2022. That's a notable decrease of 23% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$825k.

For comparison, other companies in the American Construction industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.7m. So it looks like IES Holdings compensates Jeff Gendell in line with the median for the industry. What's more, Jeff Gendell holds US$5.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	US$825k	US$750k	37%
Other	US$1.4m	US$2.1m	63%
Total Compensation	US$2.2m	US$2.9m	100%

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that IES Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

IES Holdings, Inc.'s Growth

Over the past three years, IES Holdings, Inc. has seen its earnings per share (EPS) grow by 5.7% per year. In the last year, its revenue is up 33%.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We wouldn't say this is necessarily top notch growth, but it is certainly promising. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has IES Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 68% over three years, IES Holdings, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for IES Holdings that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.