Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Jonathan Weis has been the CEO of Weis Markets, Inc. (NYSE:WMK) since 2013. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jonathan Weis’s Compensation Compare With Similar Sized Companies?
Our data indicates that Weis Markets, Inc. is worth US$988m, and total annual CEO compensation is US$5.9m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
Thus we can conclude that Jonathan Weis receives more in total compensation than the median of a group of companies in the same market, and of similar size to Weis Markets, Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Weis Markets has changed over time.
Is Weis Markets, Inc. Growing?
Weis Markets, Inc. has increased its earnings per share (EPS) by an average of 7.4% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
Has Weis Markets, Inc. Been A Good Investment?
Since shareholders would have lost about 25% over three years, some Weis Markets, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Weis Markets, 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Weis Markets 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 firstname.lastname@example.org. 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.