Performance at Park Aerospace Corp. (NYSE:PKE) has not been particularly rosy recently and shareholders will likely be holding CEO Brian Shore and the board accountable for this. The next AGM coming up on 20 July 2021 will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

View our latest analysis for Park Aerospace

How Does Total Compensation For Brian Shore Compare With Other Companies In The Industry?

According to our data, Park Aerospace Corp. has a market capitalization of US$319m, and paid its CEO total annual compensation worth US$316k over the year to February 2021. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at US$220.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$2.1m. In other words, Park Aerospace pays its CEO lower than the industry median. Furthermore, Brian Shore directly owns US$23m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. According to our research, Park Aerospace has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Park Aerospace Corp.'s Growth Numbers

Park Aerospace Corp. has reduced its earnings per share by 32% a year over the last three years. It saw its revenue drop 17% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Park Aerospace Corp. Been A Good Investment?

With a three year total loss of 6.7% for the shareholders, Park Aerospace Corp. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Park Aerospace (1 is significant!) that you should be aware of before investing here.

Important note: Park Aerospace is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

This article by Simply Wall St is general in nature. 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.

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