Key Insights

• Pioneer Power Solutions to hold its Annual General Meeting on 9th of November
• Total pay for CEO Nathan Mazurek includes US$535.5k salary
• The overall pay is comparable to the industry average
• Pioneer Power Solutions' EPS grew by 56% over the past three years while total shareholder return over the past three years was 134%

We have been pretty impressed with the performance at Pioneer Power Solutions, Inc. (NASDAQ:PPSI) recently and CEO Nathan Mazurek deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 9th of November. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Pioneer Power Solutions

How Does Total Compensation For Nathan Mazurek Compare With Other Companies In The Industry?

At the time of writing, our data shows that Pioneer Power Solutions, Inc. has a market capitalization of US$60m, and reported total annual CEO compensation of US$558k for the year to December 2022. That's a notable increase of 9.7% on last year. In particular, the salary of US$535.5k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the American Electrical industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$668k. From this we gather that Nathan Mazurek is paid around the median for CEOs in the industry. What's more, Nathan Mazurek holds US$12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. Pioneer Power Solutions pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Pioneer Power Solutions, Inc.'s Growth

Pioneer Power Solutions, Inc. has seen its earnings per share (EPS) increase by 56% a year over the past three years. In the last year, its revenue is up 78%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Pioneer Power Solutions, Inc. Been A Good Investment?

Boasting a total shareholder return of 134% over three years, Pioneer Power Solutions, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Nathan receives almost all of their compensation through a salary. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Pioneer Power Solutions that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.