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J. Nauman has been the CEO of Brady Corporation (NYSE:BRC) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does J. Nauman’s Compensation Compare With Similar Sized Companies?
Our data indicates that Brady Corporation is worth US$2.5b, and total annual CEO compensation is US$5.2m. (This figure is for the year to July 2018). While we always look at total compensation first, we note that the salary component is less, at US$760k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.3m.
So J. Nauman is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Brady has changed over time.
Is Brady Corporation Growing?
Over the last three years Brady Corporation has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Brady Corporation Been A Good Investment?
Boasting a total shareholder return of 62% over three years, Brady Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
J. Nauman is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Brady 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.
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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.