What Did Espey Mfg. & Electronics' (NYSEMKT:ESP) CEO Take Home Last Year?

This article will reflect on the compensation paid to Pat Enright who has served as CEO of Espey Mfg. & Electronics Corp. (NYSEMKT:ESP) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Espey Mfg. & Electronics.

Check out our latest analysis for Espey Mfg. & Electronics

Comparing Espey Mfg. & Electronics Corp.'s CEO Compensation With the industry

According to our data, Espey Mfg. & Electronics Corp. has a market capitalization of US$55m, and paid its CEO total annual compensation worth US$444k over the year to June 2020. That's a notable decrease of 13% on last year. Notably, the salary which is US$272.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$492k. So it looks like Espey Mfg. & Electronics compensates Pat Enright in line with the median for the industry. What's more, Pat Enright holds US$130k worth of shares in the company in their own name.

On an industry level, roughly 26% of total compensation represents salary and 74% is other remuneration. Espey Mfg. & Electronics is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Espey Mfg. & Electronics Corp.'s Growth Numbers

Espey Mfg. & Electronics Corp.'s earnings per share (EPS) grew 2.0% per year over the last three years. It saw its revenue drop 3.5% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Espey Mfg. & Electronics Corp. Been A Good Investment?

With a three year total loss of 10% for the shareholders, Espey Mfg. & Electronics Corp. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Espey Mfg. & Electronics pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, Espey Mfg. & Electronics is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Pat deserves a raise.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 5 warning signs (and 1 which makes us a bit uncomfortable) in Espey Mfg. & Electronics we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. 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.
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