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In 1988 Robert Virtue was appointed CEO of Virco Mfg. Corporation (NASDAQ:VIRC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Virco Mfg

How Does Robert Virtue's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Virco Mfg. Corporation has a market cap of US$67m, and is paying total annual CEO compensation of US$439k. (This figure is for the year to January 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$306k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.

So Robert Virtue receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Virco Mfg, below.

Is Virco Mfg. Corporation Growing?

Virco Mfg. Corporation has reduced its earnings per share by an average of 80% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 8.7%.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has Virco Mfg. Corporation Been A Good Investment?

Virco Mfg. Corporation has generated a total shareholder return of 9.1% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Robert Virtue is paid around what is normal the leaders of comparable size companies.

We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want to check for free if Virco Mfg insiders are buying or selling shares.

If you want to buy a stock that is better than Virco Mfg, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.