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Morris Goldfarb is the CEO of G-III Apparel Group, Ltd. (NASDAQ:GIII). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Morris Goldfarb’s Compensation Compare With Similar Sized Companies?
Our data indicates that G-III Apparel Group, Ltd. is worth US$1.2b, and total annual CEO compensation is US$18m. (This is based on the year to January 2019). Notably, that’s an increase of 61% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
As you can see, Morris Goldfarb is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean G-III Apparel Group, Ltd. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at G-III Apparel Group has changed over time.
Is G-III Apparel Group, Ltd. Growing?
Over the last three years G-III Apparel Group, Ltd. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). Its revenue is up 7.2% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has G-III Apparel Group, Ltd. Been A Good Investment?
With a three year total loss of 42%, G-III Apparel Group, Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at G-III Apparel Group, Ltd. 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.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at G-III Apparel Group.
If you want to buy a stock that is better than G-III Apparel Group, this free list of high return, low debt companies is a great place to look.
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 email@example.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.