Key Insights

• Fox Factory Holding to hold its Annual General Meeting on 3rd of May

• Salary of US$974.0k is part of CEO Mike Dennison's total remuneration

• Total compensation is similar to the industry average

• Fox Factory Holding's EPS grew by 8.5% over the past three years while total shareholder loss over the past three years was 74%

The underwhelming share price performance of Fox Factory Holding Corp. (NASDAQ:FOXF) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 3rd of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Fox Factory Holding

Comparing Fox Factory Holding Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Fox Factory Holding Corp. has a market capitalization of US$1.7b, and reported total annual CEO compensation of US$6.0m for the year to December 2023. Notably, that's a decrease of 22% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$974k.

On comparing similar companies from the American Auto Components industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$7.2m. This suggests that Fox Factory Holding remunerates its CEO largely in line with the industry average. What's more, Mike Dennison holds US$1.6m worth of shares in the company in their own name.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. According to our research, Fox Factory Holding has allocated a higher percentage of pay to salary in comparison to the wider 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 Fox Factory Holding Corp.'s Growth Numbers

Fox Factory Holding Corp.'s earnings per share (EPS) grew 8.5% per year over the last three years. In the last year, its revenue is down 8.6%.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Fox Factory Holding Corp. Been A Good Investment?

Few Fox Factory Holding Corp. shareholders would feel satisfied with the return of -74% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Fox Factory Holding that you should be aware of before investing.

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.