Here's Why Shareholders Will Not Be Complaining About SPX Technologies, Inc.'s (NYSE:SPXC) CEO Pay Packet

Key Insights

• SPX Technologies to hold its Annual General Meeting on 13th of May
• Total pay for CEO Gene Lowe includes US$1.09m salary
• The overall pay is comparable to the industry average
• SPX Technologies' EPS grew by 59% over the past three years while total shareholder return over the past three years was 229%

We've discovered 1 warning sign about SPX Technologies. View them for free.

We have been pretty impressed with the performance at SPX Technologies, Inc. (NYSE:SPXC) recently and CEO Gene Lowe deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 13th of May. 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. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for SPX Technologies

How Does Total Compensation For Gene Lowe Compare With Other Companies In The Industry?

Our data indicates that SPX Technologies, Inc. has a market capitalization of US$6.9b, and total annual CEO compensation was reported as US$9.3m for the year to December 2024. That's a notable increase of 21% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.0m. So it looks like SPX Technologies compensates Gene Lowe in line with the median for the industry. Moreover, Gene Lowe also holds US$102m worth of SPX Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. SPX Technologies pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

SPX Technologies, Inc.'s Growth

SPX Technologies, Inc. has seen its earnings per share (EPS) increase by 59% a year over the past three years. Its revenue is up 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SPX Technologies, Inc. Been A Good Investment?

We think that the total shareholder return of 229%, over three years, would leave most SPX Technologies, Inc. shareholders smiling. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for SPX Technologies that investors should be aware of in a dynamic business environment.

Important note: SPX Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.