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Bill Wackermann became the CEO of Wilhelmina International, Inc. (NASDAQ:WHLM) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Bill Wackermann’s Compensation Compare With Similar Sized Companies?
According to our data, Wilhelmina International, Inc. has a market capitalization of US$31m, and pays its CEO total annual compensation worth US$1.3m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$500k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.
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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Wilhelmina International, below.
Is Wilhelmina International, Inc. Growing?
Wilhelmina International, Inc. has reduced its earnings per share by an average of 43% a year, over the last three years (measured with a line of best fit). Its revenue is up 3.7% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet 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 Wilhelmina International, Inc. Been A Good Investment?
Since shareholders would have lost about 4.0% over three years, some Wilhelmina International, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Wilhelmina International, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wilhelmina International.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.