In 1988 Tim Boyle was appointed CEO of Columbia Sportswear Company (NASDAQ:COLM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.
How Does Tim Boyle’s Compensation Compare With Similar Sized Companies?
Our data indicates that Columbia Sportswear Company is worth US$6.2b, and total annual CEO compensation was reported as US$3.3m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$951k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.3m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Columbia Sportswear has changed from year to year.
Is Columbia Sportswear Company Growing?
Columbia Sportswear Company has increased its earnings per share (EPS) by an average of 28% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.6%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Columbia Sportswear Company Been A Good Investment?
Boasting a total shareholder return of 67% over three years, Columbia Sportswear Company has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Columbia Sportswear Company pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Tim Boyle deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Columbia Sportswear.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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