Key Insights

• J.W. Mays will host its Annual General Meeting on 26th of November
• Salary of US$404.4k is part of CEO Lloyd Shulman's total remuneration
• Total compensation is 34% above industry average
• J.W. Mays' EPS declined by 88% over the past three years while total shareholder return over the past three years was 11%

The share price of J.W. Mays, Inc. (NASDAQ:MAYS) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 26th of November may be an opportunity for shareholders to bring up any concerns they may have for the board's attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Comparing J.W. Mays, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that J.W. Mays, Inc. has a market capitalization of US$85m, and reported total annual CEO compensation of US$464k for the year to July 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is US$404.4k, represents most of the total compensation being paid.

On comparing similar-sized companies in the American Real Estate industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$345k. Accordingly, our analysis reveals that J.W. Mays, Inc. pays Lloyd Shulman north of the industry median. Furthermore, Lloyd Shulman directly owns US$12m 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 31% of total compensation out of all the companies we analyzed, while other remuneration made up 69% of the pie. J.W. Mays pays out 87% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at J.W. Mays, Inc.'s Growth Numbers

J.W. Mays, Inc. has reduced its earnings per share by 88% a year over the last three years. It saw its revenue drop 4.4% 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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has J.W. Mays, Inc. Been A Good Investment?

J.W. Mays, Inc. has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for J.W. Mays (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: J.W. Mays 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.

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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.