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How Should Investors React To Standex International Corporation's (NYSE:SXI) CEO Pay?

David Dunbar became the CEO of Standex International Corporation (NYSE:SXI) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Standex International

How Does David Dunbar's Compensation Compare With Similar Sized Companies?

According to our data, Standex International Corporation has a market capitalization of US$605m, and paid its CEO total annual compensation worth US$3.2m over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$821k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$3.3m.

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Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. Standex International is paying a higher share of its remuneration through a salary in comparison to the overall industry.

So David Dunbar receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Standex International has changed over time.

NYSE:SXI CEO Compensation May 11th 2020
NYSE:SXI CEO Compensation May 11th 2020

Is Standex International Corporation Growing?

Standex International Corporation has seen earnings per share (EPS) move positively by an average of 8.0% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.05%.

I would argue that the lack of revenue growth in the last year is less than ideal, but I'm happy with the EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Standex International Corporation Been A Good Investment?

Since shareholders would have lost about 43% over three years, some Standex International Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

David Dunbar is paid around the same as most CEOs of similar size companies.

The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for Standex International that investors should be aware of in a dynamic business environment.

Important note: Standex International may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.