Key Insights

• V2X to hold its Annual General Meeting on 9th of May
• Total pay for CEO Chuck Prow includes US$926.9k salary
• Total compensation is 105% above industry average
• V2X's three-year loss to shareholders was 0.4% while its EPS was down 93% over the past three years

As many shareholders of V2X, Inc. (NYSE:VVX) will be aware, they have not made a gain on their investment in the past three years. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 9th of May, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for V2X

How Does Total Compensation For Chuck Prow Compare With Other Companies In The Industry?

Our data indicates that V2X, Inc. has a market capitalization of US$1.6b, and total annual CEO compensation was reported as US$7.6m for the year to December 2023. That's a notable increase of 64% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$927k.

On examining similar-sized companies in the American Aerospace & Defense industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$3.7m. This suggests that Chuck Prow is paid more than the median for the industry. Furthermore, Chuck Prow directly owns US$5.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. In V2X's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at V2X, Inc.'s Growth Numbers

Over the last three years, V2X, Inc. has shrunk its earnings per share by 93% per year. Its revenue is up 37% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has V2X, Inc. Been A Good Investment?

Since shareholders would have lost about 0.4% over three years, some V2X, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for V2X that investors should look into moving forward.

Important note: V2X 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. 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.