Key Insights

• Sypris Solutions will host its Annual General Meeting on 5th of June
• CEO Jeffrey Gill's total compensation includes salary of US$515.0k
• Total compensation is similar to the industry average
• Over the past three years, Sypris Solutions' EPS fell by 92% and over the past three years, the total loss to shareholders 56%

Shareholders of Sypris Solutions, Inc. (NASDAQ:SYPR) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 5th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

How Does Total Compensation For Jeffrey Gill Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sypris Solutions, Inc. has a market capitalization of US$33m, and reported total annual CEO compensation of US$844k for the year to December 2023. That's slightly lower by 5.3% over the previous year. In particular, the salary of US$515.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the American Auto Components industry with market capitalizations below US$200m, reported a median total CEO compensation of US$656k. From this we gather that Jeffrey Gill is paid around the median for CEOs in the industry. What's more, Jeffrey Gill holds US$4.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. Sypris Solutions pays out 61% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Sypris Solutions, Inc.'s Growth Numbers

Sypris Solutions, Inc. has reduced its earnings per share by 92% a year over the last three years. It achieved revenue growth of 20% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sypris Solutions, Inc. Been A Good Investment?

With a total shareholder return of -56% over three years, Sypris Solutions, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company's remuneration policies and evaluate if the board's judgement and decision-making is aligned with that of the company's shareholders.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Sypris Solutions (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.