This Is Why Enpro Inc.'s (NYSE:NPO) CEO Compensation Looks Appropriate

Key Insights

• Enpro will host its Annual General Meeting on 30th of April
• CEO Eric Vaillancourt's total compensation includes salary of US$886.2k
• The overall pay is comparable to the industry average
• Enpro's EPS grew by 7.8% over the past three years while total shareholder return over the past three years was 55%

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CEO Eric Vaillancourt has done a decent job of delivering relatively good performance at Enpro Inc. (NYSE:NPO) recently. As shareholders go into the upcoming AGM on 30th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Enpro

How Does Total Compensation For Eric Vaillancourt Compare With Other Companies In The Industry?

At the time of writing, our data shows that Enpro Inc. has a market capitalization of US$2.9b, and reported total annual CEO compensation of US$6.7m for the year to December 2024. That's a fairly small increase of 7.7% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$886k.

On comparing similar companies from the American Machinery industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.7m. This suggests that Enpro remunerates its CEO largely in line with the industry average. What's more, Eric Vaillancourt holds US$5.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$886k	US$831k	13%
Other	US$5.8m	US$5.4m	87%
Total Compensation	US$6.7m	US$6.2m	100%

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Our data reveals that Enpro allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Enpro Inc.'s Growth Numbers

Enpro Inc. has seen its earnings per share (EPS) increase by 7.8% a year over the past three years. Its revenue is down 1.0% over the previous year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Enpro Inc. Been A Good Investment?

Boasting a total shareholder return of 55% over three years, Enpro 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.

To Conclude...

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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Enpro.

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.