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Performance at SPX Corporation (NYSE:SPXC) has been reasonably good and CEO Gene Lowe has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 11 May 2021. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for SPX
Comparing SPX Corporation's CEO Compensation With the industry
At the time of writing, our data shows that SPX Corporation has a market capitalization of US$2.8b, and reported total annual CEO compensation of US$6.1m for the year to December 2020. That's a notable decrease of 20% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$918k.
On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$5.4m. From this we gather that Gene Lowe is paid around the median for CEOs in the industry. What's more, Gene Lowe holds US$16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$918k | US$878k | 15% |
| Other | US$5.2m | US$6.7m | 85% |
| Total Compensation | US$6.1m | US$7.6m | 100% |
Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. It's interesting to note that SPX allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at SPX Corporation's Growth Numbers
SPX Corporation has seen its earnings per share (EPS) increase by 4.4% a year over the past three years. It achieved revenue growth of 2.5% over the last year.
We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has SPX Corporation Been A Good Investment?
Boasting a total shareholder return of 86% over three years, SPX Corporation has done well by shareholders. 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.