Yahoo Finance We Discuss Why Oxford Industries, Inc.'s (NYSE:OXM) CEO May Deserve A Higher Pay Packet
Key Insights
Oxford Industries will host its Annual General Meeting on 25th of June
CEO Tom Chubb's total compensation includes salary of US$934.6k
The total compensation is 43% less than the average for the industry
Over the past three years, Oxford Industries' EPS grew by 13% and over the past three years, the total shareholder return was 8.2%
The decent performance at Oxford Industries, Inc. (NYSE:OXM) recently will please most shareholders as they go into the AGM coming up on 25th of June. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.
View our latest analysis for Oxford Industries
How Does Total Compensation For Tom Chubb Compare With Other Companies In The Industry?
Our data indicates that Oxford Industries, Inc. has a market capitalization of US$1.6b, and total annual CEO compensation was reported as US$5.6m for the year to February 2024. We note that's an increase of 8.3% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$935k.
In comparison with other companies in the American Luxury industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$9.8m. In other words, Oxford Industries pays its CEO lower than the industry median. What's more, Tom Chubb holds US$14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$935k | US$897k | 17% |
Other | US$4.7m | US$4.3m | 83% |
Total Compensation | US$5.6m | US$5.2m | 100% |
Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. Oxford Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Oxford Industries, Inc.'s Growth Numbers
Oxford Industries, Inc. has seen its earnings per share (EPS) increase by 13% a year over the past three years. Its revenue is up 4.5% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Oxford Industries, Inc. Been A Good Investment?
Oxford Industries, Inc. has not done too badly by shareholders, with a total return of 8.2%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
In Summary...
While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
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 4 warning signs for Oxford Industries that you should be aware of before investing.
Switching gears from Oxford Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
