Key Insights

• REX American Resources' Annual General Meeting to take place on 11th of June
• Salary of US$275.0k is part of CEO Zafar Rizvi's total remuneration
• Total compensation is 119% above industry average
• REX American Resources' total shareholder return over the past three years was 51% while its EPS grew by 60% over the past three years

Under the guidance of CEO Zafar Rizvi, REX American Resources Corporation (NYSE:REX) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11th of June. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Zafar Rizvi Compare With Other Companies In The Industry?

At the time of writing, our data shows that REX American Resources Corporation has a market capitalization of US$860m, and reported total annual CEO compensation of US$6.1m for the year to January 2024. We note that's an increase of 52% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$275k.

In comparison with other companies in the American Oil and Gas industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.8m. Hence, we can conclude that Zafar Rizvi is remunerated higher than the industry median. Furthermore, Zafar Rizvi directly owns US$13m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. REX American Resources has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at REX American Resources Corporation's Growth Numbers

REX American Resources Corporation's earnings per share (EPS) grew 60% per year over the last three years. In the last year, its revenue is down 10%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has REX American Resources Corporation Been A Good Investment?

Most shareholders would probably be pleased with REX American Resources Corporation for providing a total return of 51% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

REX American Resources prefers rewarding its CEO through non-salary benefits. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for REX American Resources that investors should think about before committing capital to this 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.