Key Insights
- VSE's Annual General Meeting to take place on 8th of May
- Total pay for CEO John Cuomo includes US$900.0k salary
- The overall pay is 33% below the industry average
- VSE's total shareholder return over the past three years was 194% while its EPS grew by 31% over the past three years
The solid performance at VSE Corporation (NASDAQ:VSEC) has been impressive and shareholders will probably be pleased to know that CEO John Cuomo has delivered. This would be kept in mind at the upcoming AGM on 8th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
View our latest analysis for VSE
Comparing VSE Corporation's CEO Compensation With The Industry
According to our data, VSE Corporation has a market capitalization of US$2.4b, and paid its CEO total annual compensation worth US$4.9m over the year to December 2024. Notably, that's an increase of 8.4% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$900k.
For comparison, other companies in the American Commercial Services industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$7.4m. Accordingly, VSE pays its CEO under the industry median. Moreover, John Cuomo also holds US$17m worth of VSE stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$900k | US$848k | 18% |
| Other | US$4.0m | US$3.7m | 82% |
| Total Compensation | US$4.9m | US$4.6m | 100% |
On an industry level, around 24% of total compensation represents salary and 76% is other remuneration. VSE pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
VSE Corporation's Growth
Over the past three years, VSE Corporation has seen its earnings per share (EPS) grow by 31% per year. Its revenue is up 26% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 VSE Corporation Been A Good Investment?
Boasting a total shareholder return of 194% over three years, VSE Corporation 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...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
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 4 warning signs (and 2 which are a bit unpleasant) in VSE we think you should know about.
Switching gears from VSE, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Valuation is complex, but we're here to simplify it.
Discover if VSE might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.