Shareholders are likely to be cautious about increasing compensation for the CEO of Park Aerospace Corp. (NYSE: PKE) at the moment


Performances at Park Aerospace Corp. (NYSE: PKE) hasn’t been particularly rosy lately, and shareholders will likely hold CEO Brian Shore and the board of directors accountable. The next general meeting on July 20, 2021 will be an opportunity for shareholders to express their concerns to the board of directors, to question management on the company’s strategy and to vote on resolutions such as compensation. leaders, who can help change the company’s future outlook. Based on our analysis below, we believe CEO compensation looks appropriate at this time.

Check out our latest review for Park Aerospace

How does Brian Shore’s total compensation compare to other companies in the industry?

According to our data, Park Aerospace Corp. has a market capitalization of US $ 319 million and paid its CEO a total annual compensation of US $ 316,000 in the year until February 2021. In other words, the compensation was roughly the same as the ‘last year. We note that the salary portion, which amounts to US $ 220,000, constitutes the majority of the total compensation received by the CEO.

Looking at similar-sized companies in the industry with market capitalizations between US $ 200 million and US $ 800 million, we found that the median total compensation of CEOs in this group was US $ 2.1 million. In other words, Park Aerospace pays its CEO less than the industry median. In addition, Brian Shore directly owns $ 23 million in company stock, which means they are deeply invested in the company’s success.

Component

2021

2020

Proportion (2021)

Salary

US $ 220,000

US $ 250,000

70%

Other

US $ 96,000

US $ 73,000

30%

Total compensation

$ 316,000

US $ 323,000

100%

At the industry level, almost 17% of total compensation is salary, while the remainder 83% is other compensation. According to our research, Park Aerospace allocated a higher percentage of salary to salary compared to the industry as a whole. If the total compensation is oriented towards the salary, this suggests that the variable part – which is generally linked to performance, is lower.

CEO-compensation

A look at the growth figures for Park Aerospace Corp.

Park Aerospace Corp. has reduced its earnings per share by 32% per year over the past three years. He has seen his income drop 17% in the past year.

Overall, this is not a very positive result for shareholders. This is made worse by the fact that revenues are actually down compared to last year. It’s hard to say the company is firing on all cylinders, so shareholders might be averse to high CEO pay. While we don’t have an analyst forecast for the company, shareholders might want to take a look at this detailed historical chart of earnings, income and cash flow.

Park Aerospace Corp. was it a good investment?

With a total three-year loss of 6.7% for shareholders, Park Aerospace Corp. would certainly have disgruntled shareholders. Therefore, it could be upsetting for shareholders if the CEO is paid generously.

To conclude…

Not only did the shareholders not see a favorable return on their investment, but the business did not perform well either. Few shareholders would be willing to give the CEO a pay rise. At the next AGM, the board of directors will have the opportunity to explain the measures it intends to take to improve the performance of the company.

It is always advisable to analyze the CEO’s compensation, as well as perform an in-depth analysis of the key performance areas of the company. We have identified 2 warning signs for Park Aerospace (1 is significant!) That you should know before investing here.

Important note: Park Aerospace is exciting stock, but we understand that investors can look for an unencumbered balance sheet and exceptional returns. You might find something better in this list of interesting companies with high ROE and low leverage.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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