Yahoo Finance Should You Worry About National Presto Industries, Inc.'s (NYSE:NPK) CEO Pay?
Maryjo Cohen has been the CEO of National Presto Industries, Inc. (NYSE:NPK) since 1994. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for National Presto Industries
How Does Maryjo Cohen's Compensation Compare With Similar Sized Companies?
According to our data, National Presto Industries, Inc. has a market capitalization of US$579m, and paid its CEO total annual compensation worth US$719k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$594k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$2.1m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 18% of total compensation out of all the companies we analysed, while other remuneration made up 82% of the pie. According to our research, National Presto Industries has allocated a higher percentage of pay to salary in comparison to the broader sector.
At first glance this seems like a real positive for shareholders, since Maryjo Cohen is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at National Presto Industries has changed from year to year.
Is National Presto Industries, Inc. Growing?
On average over the last three years, National Presto Industries, Inc. has shrunk earnings per share by 7.1% each year (measured with a line of best fit). It saw its revenue drop 4.6% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has National Presto Industries, Inc. Been A Good Investment?
With a three year total loss of 1.4%, National Presto Industries, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It appears that National Presto Industries, Inc. remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Maryjo Cohen is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Moving away from CEO compensation for the moment, we've identified 1 warning sign for National Presto Industries that you should be aware of before investing.
If you want to buy a stock that is better than National Presto Industries, this free list of high return, low debt companies is a great place to look.
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.
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