Brian Goldner has been the CEO of Hasbro, Inc. (NASDAQ:HAS) since 2008. First, this article will compare CEO compensation with compensation at other large companies. 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 process should give us an idea about how appropriately the CEO is paid.
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How Does Brian Goldner's Compensation Compare With Similar Sized Companies?
Our data indicates that Hasbro, Inc. is worth US$13b, and total annual CEO compensation is US$8.5m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.6m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Brian Goldner receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Hasbro has changed from year to year.
Is Hasbro, Inc. Growing?
Over the last three years Hasbro, Inc. has shrunk its earnings per share by an average of 30% per year (measured with a line of best fit). It saw its revenue drop -6.7% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO.
Has Hasbro, Inc. Been A Good Investment?
Boasting a total shareholder return of 38% over three years, Hasbro, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Brian Goldner is paid around what is normal the leaders of larger companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for large companies. Whatever your view on compensation, you might want to check if insiders are buying or selling Hasbro shares (free trial).
Important note: Hasbro may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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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.