Sandy Cochran became the CEO of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Sandy Cochran’s Compensation Compare With Similar Sized Companies?
Our data indicates that Cracker Barrel Old Country Store, Inc. is worth US$2.6b, and total annual CEO compensation was reported as US$7.0m for the year to August 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.9m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it’s no different in the case of Cracker Barrel Old Country Store. Talking in terms of the sector, salary represented approximately 26% of total compensation out of all the companies we analysed, while other remuneration made up 74% of the pie. It’s interesting to note that Cracker Barrel Old Country Store allocates a smaller portion of compensation to salary in comparison to the broader industry.
That means Sandy Cochran receives fairly typical remuneration for the CEO of a company that size. 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 Cracker Barrel Old Country Store, below.
Is Cracker Barrel Old Country Store, Inc. Growing?
Over the last three years Cracker Barrel Old Country Store, Inc. has seen earnings per share (EPS) move in a positive direction by an average of 3.2% per year (using a line of best fit). Its revenue is up 1.4% over last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has Cracker Barrel Old Country Store, Inc. Been A Good Investment?
With a three year total loss of 26%, Cracker Barrel Old Country Store, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Sandy Cochran is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And it’s hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. Shifting gears from CEO pay for a second, we’ve picked out 3 warning signs for Cracker Barrel Old Country Store that investors should be aware of in a dynamic business environment.
Important note: Cracker Barrel Old Country Store may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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