Is Wilhelmina International, Inc. (NASDAQ:WHLM) Excessively Paying Its CEO?

Bill Wackermann has been the CEO of Wilhelmina International, Inc. (NASDAQ:WHLM) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

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View our latest analysis for Wilhelmina International

How Does Bill Wackermann’s Compensation Compare With Similar Sized Companies?

Our data indicates that Wilhelmina International, Inc. is worth US$31m, and total annual CEO compensation is US$618k. (This number is for the twelve months until December 2018). That’s less than last year. Notably, the salary of US$593k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$448k.

Thus we can conclude that Bill Wackermann receives more in total compensation than the median of a group of companies in the same market, and of similar size to Wilhelmina International, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Wilhelmina International, below.

NasdaqCM:WHLM CEO Compensation, May 23rd 2019
NasdaqCM:WHLM CEO Compensation, May 23rd 2019

Is Wilhelmina International, Inc. Growing?

On average over the last three years, Wilhelmina International, Inc. has grown earnings per share (EPS) by 1.3% each year (using a line of best fit). It achieved revenue growth of 6.0% over the last year.

I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Wilhelmina International, Inc. Been A Good Investment?

With a three year total loss of 11%, Wilhelmina International, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared total CEO remuneration at Wilhelmina International, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we’d stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Shareholders may want to check for free if Wilhelmina International insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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 editorial-team@simplywallst.com. 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.