It's Probably Less Likely That CVD Equipment Corporation's (NASDAQ:CVV) CEO Will See A Huge Pay Rise This Year

Key Insights

• CVD Equipment to hold its Annual General Meeting on 9th of August
• CEO Manny Lakios' total compensation includes salary of US$388.6k
• Total compensation is similar to the industry average
• CVD Equipment's EPS grew by 4.1% over the past three years while total shareholder loss over the past three years was 6.5%

In the past three years, the share price of CVD Equipment Corporation (NASDAQ:CVV) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 9th of August. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for CVD Equipment

How Does Total Compensation For Manny Lakios Compare With Other Companies In The Industry?

According to our data, CVD Equipment Corporation has a market capitalization of US$27m, and paid its CEO total annual compensation worth US$1.1m over the year to December 2023. Notably, that's an increase of 46% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$389k.

On comparing similar-sized companies in the American Semiconductor industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$951k. So it looks like CVD Equipment compensates Manny Lakios in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	US$389k	US$317k	35%
Other	US$720k	US$442k	65%
Total Compensation	US$1.1m	US$759k	100%

On an industry level, around 11% of total compensation represents salary and 89% is other remuneration. According to our research, CVD Equipment has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CVD Equipment Corporation's Growth

CVD Equipment Corporation's earnings per share (EPS) grew 4.1% per year over the last three years. It saw its revenue drop 32% over the last year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CVD Equipment Corporation Been A Good Investment?

Given the total shareholder loss of 6.5% over three years, many shareholders in CVD Equipment Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for CVD Equipment 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com