Yahoo Finance Most Shareholders Will Probably Find That The CEO Compensation For Gentex Corporation (NASDAQ:GNTX) Is Reasonable
Key Insights
Gentex will host its Annual General Meeting on 16th of May
Salary of US$842.7k is part of CEO Steve Downing's total remuneration
The total compensation is similar to the average for the industry
Gentex's EPS grew by 7.2% over the past three years while total shareholder return over the past three years was 6.2%
CEO Steve Downing has done a decent job of delivering relatively good performance at Gentex Corporation (NASDAQ:GNTX) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Gentex
How Does Total Compensation For Steve Downing Compare With Other Companies In The Industry?
At the time of writing, our data shows that Gentex Corporation has a market capitalization of US$8.1b, and reported total annual CEO compensation of US$7.1m for the year to December 2023. We note that's an increase of 58% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$843k.
On examining similar-sized companies in the American Auto Components industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$7.1m. From this we gather that Steve Downing is paid around the median for CEOs in the industry. Furthermore, Steve Downing directly owns US$5.7m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$843k | US$793k | 12% |
Other | US$6.3m | US$3.7m | 88% |
Total Compensation | US$7.1m | US$4.5m | 100% |
On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. It's interesting to note that Gentex allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Gentex Corporation's Growth Numbers
Over the past three years, Gentex Corporation has seen its earnings per share (EPS) grow by 7.2% per year. Its revenue is up 17% over the last year.
We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Gentex Corporation Been A Good Investment?
Gentex Corporation has not done too badly by shareholders, with a total return of 6.2%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Gentex (free visualization of insider trades).
Switching gears from Gentex, 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.
