How Should Investors React To Bassett Furniture Industries, Incorporated’s (NASDAQ:BSET) CEO Pay?

Robert Spilman has been the CEO of Bassett Furniture Industries, Incorporated (NASDAQ:BSET) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

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View our latest analysis for Bassett Furniture Industries

How Does Robert Spilman’s Compensation Compare With Similar Sized Companies?

According to our data, Bassett Furniture Industries, Incorporated has a market capitalization of US$172m, and pays its CEO total annual compensation worth US$1.0m. (This number is for the twelve months until November 2018). That’s a modest increase of 5.8% on the prior year year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$413k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.

So Robert Spilman receives a similar amount to the median CEO pay, amongst 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.

The graphic below shows how CEO compensation at Bassett Furniture Industries has changed from year to year.

NasdaqGS:BSET CEO Compensation, May 21st 2019
NasdaqGS:BSET CEO Compensation, May 21st 2019

Is Bassett Furniture Industries, Incorporated Growing?

Bassett Furniture Industries, Incorporated has reduced its earnings per share by an average of 17% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 2.3% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has Bassett Furniture Industries, Incorporated Been A Good Investment?

Given the total loss of 34% over three years, many shareholders in Bassett Furniture Industries, Incorporated are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Remuneration for Robert Spilman is close enough to the median pay for a CEO of a similar sized company .

The company isn’t growing EPS, and shareholder returns have been disappointing. Few would argue that it’s wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying Bassett Furniture Industries shares with their own money (free access).

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.