John Hewitt became the CEO of Matrix Service Company (NASDAQ:MTRX) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Hewitt’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Matrix Service Company has a market cap of US$556m, and is paying total annual CEO compensation of US$2m. That’s a modest increase of 6.1% on the prior year year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$2m.
As you can see, John Hewitt is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Matrix Service Company is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Matrix Service has changed over time.
Is Matrix Service Company Growing?
Over the last three years Matrix Service Company has shrunk its earnings per share by an average of 76% per year. Its revenue is down -8.8% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Matrix Service Company Been A Good Investment?
Since shareholders would have lost about 7.5% over three years, some Matrix Service Company shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Matrix Service Company, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Matrix Service Company shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.