Increases to CEO Compensation Might Be Put On Hold For Now at REX American Resources Corporation (NYSE:REX)
In This Article:
Key Insights
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REX American Resources to hold its Annual General Meeting on 11th of June
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CEO Zafar Rizvi's total compensation includes salary of US$275.0k
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The total compensation is 119% higher than the average for the industry
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REX American Resources' total shareholder return over the past three years was 51% while its EPS grew by 60% over the past three years
Under the guidance of CEO Zafar Rizvi, REX American Resources Corporation (NYSE:REX) has performed reasonably well 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 11th of June. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for REX American Resources
Comparing REX American Resources Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that REX American Resources Corporation has a market capitalization of US$860m, and reported total annual CEO compensation of US$6.1m for the year to January 2024. That's a notable increase of 52% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$275k.
In comparison with other companies in the American Oil and Gas industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.8m. This suggests that Zafar Rizvi is paid more than the median for the industry. Moreover, Zafar Rizvi also holds US$13m worth of REX American Resources stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$275k | US$275k | 5% |
Other | US$5.8m | US$3.7m | 95% |
Total Compensation | US$6.1m | US$4.0m | 100% |
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to Zafar Rizvi as compared to non-salary compensation over the one-year period examined. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
REX American Resources Corporation's Growth
Over the past three years, REX American Resources Corporation has seen its earnings per share (EPS) grow by 60% per year. In the last year, its revenue is down 10%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.