Stock Analysis

It's Unlikely That Standex International Corporation's (NYSE:SXI) CEO Will See A Huge Pay Rise This Year

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CEO David Dunbar has done a decent job of delivering relatively good performance at Standex International Corporation (NYSE:SXI) recently. As shareholders go into the upcoming AGM on 26 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Standex International

Comparing Standex International Corporation's CEO Compensation With the industry

Our data indicates that Standex International Corporation has a market capitalization of US$1.3b, and total annual CEO compensation was reported as US$5.8m for the year to June 2021. Notably, that's an increase of 44% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$865k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$2.7m. Hence, we can conclude that David Dunbar is remunerated higher than the industry median. What's more, David Dunbar holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary US$865k US$846k 15%
Other US$4.9m US$3.2m 85%
Total CompensationUS$5.8m US$4.0m100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. Standex International sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

NYSE:SXI CEO Compensation October 20th 2021

A Look at Standex International Corporation's Growth Numbers

Standex International Corporation's earnings per share (EPS) grew 9.9% per year over the last three years. Its revenue is up 8.6% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Standex International Corporation Been A Good Investment?

Standex International Corporation has generated a total shareholder return of 12% 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.

To Conclude...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 Standex International that investors should be aware of in a dynamic business environment.

Important note: Standex International 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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Find out whether Standex International is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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