The CEO of Standex International Corporation (NYSE:SXI) is unlikely to see a huge pay rise this year

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CEO David Dunbar has done a decent job delivering relatively good performance at Standex international company (NYSE: SXI) recently. As shareholders take part in the upcoming Annual General Meeting on October 26, 2021, CEO compensation will likely not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will remain cautious about excessive CEO compensation.

See our latest analysis for Standex International

Standex International Corporation CEO Compensation Comparison with the Industry

Our data indicates that Standex International Corporation has a market capitalization of US$1.3 billion and the total annual CEO compensation was US$5.8 million for the year to June 2021. This is including a 44% increase over the previous year. While this analysis focuses on total compensation, it should be recognized that the salary portion is lower, valued at $865,000.

In comparison to other companies in the industry with market caps ranging from $1.0 billion to $3.2 billion, the median reported total CEO compensation was $2.7 million. Therefore, we can conclude that David Dunbar is paid better than the industry median. Additionally, David Dunbar owns $11 million worth of stock in the company in his own name, indicating they have a lot of skin in the game.

Making up 2021 2020 Percentage (2021)
Salary $865,000 $846,000 15%
Other $4.9 million $3.2 million 85%
The total compensation $5.8 million $4.0 million 100%

At the industry level, about 20% of total compensation is salary and 80% is other compensation. Standex International sets aside a smaller share of compensation for salary, compared to the industry as a whole. If total compensation is skewed towards non-salary benefits, this indicates that CEO compensation is tied to company performance.

NYSE: SXI CEO Compensation October 20, 2021

A look at Standex International Corporation’s growth figures

Earnings per share (EPS) of Standex International Corporation has increased 9.9% annually over the past three years. Its turnover is up 8.6% compared to last year.

We’re not particularly impressed with the revenue growth, but the modest improvement in EPS is good. Considering these factors, we’d say the performance was pretty decent, but not amazing. In the future, you might want to check out this free visual report on analyst forecasts for the future profits of the company.

Was Standex International Corporation a good investment?

Standex International Corporation has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably happy. But they probably don’t want to see the CEO paid more than is normal for companies of the same size.

To conclude…

Seeing that the company performed decently, only a few shareholders, if any, might have questions about CEO compensation at the upcoming AGM. However, any decision to raise the CEO’s salary could be met with objections from shareholders given that the CEO is already paid more than the industry average.

While CEO compensation is an important factor to consider, there are other areas that investors should also be aware of. We have identified 2 warning signs for Standex International which investors should be aware of in a dynamic trading environment.

Important note: Standex International is an exciting stock, but we understand that investors may be looking for a clean balance sheet and exceptional returns. You might find something better in this list of interesting companies with high ROE and low debt.

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