Is Vishay Precision Group, Inc. (NYSE:VPG) Overpaying Its CEO?

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In 2010 Ziv Shoshani was appointed CEO of Vishay Precision Group, Inc. (NYSE:VPG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Vishay Precision Group

How Does Ziv Shoshani's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Vishay Precision Group, Inc. has a market cap of US$451m, and is paying total annual CEO compensation of US$2.2m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$567k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.

It would therefore appear that Vishay Precision Group, Inc. pays Ziv Shoshani more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Vishay Precision Group, below.

Is Vishay Precision Group, Inc. Growing?

On average over the last three years, Vishay Precision Group, Inc. has grown earnings per share (EPS) by 101% each year (using a line of best fit). In the last year, its revenue is up 21%.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Vishay Precision Group, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Vishay Precision Group, Inc. for providing a total return of 214% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared the total CEO remuneration paid by Vishay Precision Group, Inc., 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Vishay Precision Group (free visualization of insider trades).

If you want to buy a stock that is better than Vishay Precision Group, this freelist of high return, low debt companies is a great place to look.

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 editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.