Brian Goldner has been the CEO of Hasbro, Inc. (NASDAQ:HAS) since 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Hasbro
How Does Brian Goldner's Compensation Compare With Similar Sized Companies?
Our data indicates that Hasbro, Inc. is worth US$14b, and total annual CEO compensation was reported as US$8.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.6m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Brian Goldner 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. It could be important to check this free visual depiction of what analysts expect for the future.
You can see, below, how CEO compensation at Hasbro has changed over time.
Is Hasbro, Inc. Growing?
Over the last three years Hasbro, Inc. has shrunk its earnings per share by an average of 33% per year (measured with a line of best fit). In the last year, its revenue is down 2.2%.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. 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?
With a total shareholder return of 31% over three years, Hasbro, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Brian Goldner is paid around what is normal the leaders of larger companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We do not think the CEO pay is a problem, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. So you may want to check if insiders are buying Hasbro 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.
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.
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