How Much Did Limbach Holdings, Inc.'s (NASDAQ:LMB) CEO Pocket Last Year?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Charlie Bacon has been the CEO of Limbach Holdings, Inc. (NASDAQ:LMB) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Limbach Holdings

How Does Charlie Bacon's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Limbach Holdings, Inc. has a market cap of US$68m, and is paying total annual CEO compensation of US$854k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$618k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$465k.

Thus we can conclude that Charlie Bacon receives more in total compensation than the median of a group of companies in the same market, and of similar size to Limbach Holdings, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Limbach Holdings has changed from year to year.

Is Limbach Holdings, Inc. Growing?

Over the last three years Limbach Holdings, Inc. has shrunk its earnings per share by an average of 95% per year (measured with a line of best fit). Its revenue is up 14% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Limbach Holdings, Inc. Been A Good Investment?

Given the total loss of 4.6% over three years, many shareholders in Limbach Holdings, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount Limbach Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying Limbach Holdings shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.