Yahoo Finance How Much is Oshkosh Corporation's (NYSE:OSK) CEO Getting Paid?
Wilson Jones has been the CEO of Oshkosh Corporation (NYSE:OSK) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Oshkosh
How Does Wilson Jones's Compensation Compare With Similar Sized Companies?
Our data indicates that Oshkosh Corporation is worth US$5.1b, and total annual CEO compensation was reported as US$11m for the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.8m.
Thus we can conclude that Wilson Jones receives more in total compensation than the median of a group of companies in the same market, and of similar size to Oshkosh Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Oshkosh has changed from year to year.
Is Oshkosh Corporation Growing?
Over the last three years Oshkosh Corporation has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). Its revenue is up 8.3% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Oshkosh Corporation Been A Good Investment?
Most shareholders would probably be pleased with Oshkosh Corporation for providing a total return of 43% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Oshkosh Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Oshkosh shares (free trial).
Important note: Oshkosh 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.
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.
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. Thank you for reading.
