Yahoo Finance Is EVI Industries, Inc.'s (NYSEMKT:EVI) CEO Salary Justified?
Henry Nahmad became the CEO of EVI Industries, Inc. (NYSEMKT:EVI) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for EVI Industries
How Does Henry Nahmad's Compensation Compare With Similar Sized Companies?
Our data indicates that EVI Industries, Inc. is worth US$305m, and total annual CEO compensation was reported as US$550k for the year to June 2019. Notably, the salary of US$550k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
A first glance this seems like a real positive for shareholders, since Henry Nahmad is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at EVI Industries, below.
Is EVI Industries, Inc. Growing?
Over the last three years EVI Industries, Inc. has shrunk its earnings per share by an average of 2.5% per year (measured with a line of best fit). Its revenue is up 44% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 EVI Industries, Inc. Been A Good Investment?
I think that the total shareholder return of 75%, over three years, would leave most EVI Industries, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It looks like EVI Industries, Inc. pays its CEO less than similar sized companies.
Henry Nahmad is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at EVI Industries.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.
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