How Much Does CompX International's (NYSEMKT:CIX) CEO Make?

This article will reflect on the compensation paid to Scott James who has served as CEO of CompX International Inc. (NYSEMKT:CIX) since 2017. This analysis will also assess whether CompX International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for CompX International

Comparing CompX International Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that CompX International Inc. has a market capitalization of US$177m, and reported total annual CEO compensation of US$1.1m for the year to December 2019. That's just a smallish increase of 4.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$474k.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$3.5m. In other words, CompX International pays its CEO lower than the industry median.

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. It's interesting to note that CompX International pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CompX International Inc.'s Growth

Over the last three years, CompX International Inc. has shrunk its earnings per share by 1.2% per year. Its revenue is down 6.4% over the previous year.

The lack of EPS growth is certainly unimpressive. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CompX International Inc. Been A Good Investment?

With a total shareholder return of 13% over three years, CompX International Inc. shareholders would, in general, 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...

As we noted earlier, CompX International pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Shareholder returns have been uninspiring, but EPS growth has arguably been worse, over the last three years. We can't categorize CEO compensation as high, but shareholders might object to a raise at this stage, considering overall poor performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for CompX International that you should be aware of before investing.

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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