Is Helen of Troy Limited (NASDAQ:HELE) Overpaying Its CEO?

In 2014 Julien Mininberg was appointed CEO of Helen of Troy Limited (NASDAQ:HELE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Helen of Troy

How Does Julien Mininberg’s Compensation Compare With Similar Sized Companies?

Our data indicates that Helen of Troy Limited is worth US$2.9b, and total annual CEO compensation is US$6.8m. (This number is for the twelve months until February 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$975k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$4.9m.

It would therefore appear that Helen of Troy Limited pays Julien Mininberg more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Helen of Troy has changed over time.

NasdaqGS:HELE CEO Compensation, March 26th 2019
NasdaqGS:HELE CEO Compensation, March 26th 2019

Is Helen of Troy Limited Growing?

Helen of Troy Limited has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 18%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Helen of Troy Limited Been A Good Investment?

With a total shareholder return of 11% over three years, Helen of Troy Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared total CEO remuneration at Helen of Troy Limited 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. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Helen of Troy (free visualization of insider trades).

Important note: Helen of Troy 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.

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.