Key Insights

• SigmaTron International's Annual General Meeting to take place on 22nd of September
• CEO Gary Fairhead's total compensation includes salary of US$347.7k
• The overall pay is comparable to the industry average
• Over the past three years, SigmaTron International's EPS grew by 29% and over the past three years, the total shareholder return was 13%

Performance at SigmaTron International, Inc. (NASDAQ:SGMA) has been reasonably good and CEO Gary Fairhead has done a decent job of steering the company in the right direction. 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 22nd of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for SigmaTron International

How Does Total Compensation For Gary Fairhead Compare With Other Companies In The Industry?

According to our data, SigmaTron International, Inc. has a market capitalization of US$21m, and paid its CEO total annual compensation worth US$524k over the year to April 2023. We note that's a decrease of 30% compared to last year. We note that the salary portion, which stands at US$347.7k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the American Electronic industry with market capitalizations below US$200m, reported a median total CEO compensation of US$441k. This suggests that SigmaTron International remunerates its CEO largely in line with the industry average. Moreover, Gary Fairhead also holds US$326k worth of SigmaTron International stock directly under their own name.

Speaking on an industry level, nearly 32% of total compensation represents salary, while the remainder of 68% is other remuneration. It's interesting to note that SigmaTron International pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

SigmaTron International, Inc.'s Growth

Over the past three years, SigmaTron International, Inc. has seen its earnings per share (EPS) grow by 29% per year. Its revenue is up 2.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SigmaTron International, Inc. Been A Good Investment?

SigmaTron International, Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which make us uncomfortable) in SigmaTron International we think you should know about.

Switching gears from SigmaTron International, 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.