It's Unlikely That Insteel Industries, Inc.'s (NYSE:IIIN) CEO Will See A Huge Pay Rise This Year

Performance at Insteel Industries, Inc. (NYSE:IIIN) has been reasonably good and CEO Howard Woltz has done a decent job of steering the company in the right direction. 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 14 February 2023. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Insteel Industries

Comparing Insteel Industries, Inc.'s CEO Compensation With The Industry

According to our data, Insteel Industries, Inc. has a market capitalization of US$599m, and paid its CEO total annual compensation worth US$2.5m over the year to October 2022. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$682k.

In comparison with other companies in the American Building industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$186k. Hence, we can conclude that Howard Woltz is remunerated higher than the industry median. Furthermore, Howard Woltz directly owns US$21m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	US$682k	US$666k	27%
Other	US$1.8m	US$1.8m	73%
Total Compensation	US$2.5m	US$2.5m	100%

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. It's interesting to note that Insteel Industries 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.

A Look at Insteel Industries, Inc.'s Growth Numbers

Over the past three years, Insteel Industries, Inc. has seen its earnings per share (EPS) grow by 281% per year. It achieved revenue growth of 26% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Insteel Industries, Inc. Been A Good Investment?

Boasting a total shareholder return of 69% over three years, Insteel Industries, Inc. has done well by shareholders. 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Insteel Industries that investors should be aware of in a dynamic business environment.

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.