How Is Johnson Outdoors' (NASDAQ:JOUT) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Helen Johnson-Leipold who has served as CEO of Johnson Outdoors Inc. (NASDAQ:JOUT) since 1999. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Johnson Outdoors.

View our latest analysis for Johnson Outdoors

Comparing Johnson Outdoors Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Johnson Outdoors Inc. has a market capitalization of US$1.2b, and reported total annual CEO compensation of US$3.0m for the year to October 2020. We note that's an increase of 15% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$778k.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$1.9m. Hence, we can conclude that Helen Johnson-Leipold is remunerated higher than the industry median. What's more, Helen Johnson-Leipold holds US$334m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 26% of total compensation represents salary, while the remainder of 74% is other remuneration. Our data reveals that Johnson Outdoors allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Johnson Outdoors Inc.'s Growth

Over the past three years, Johnson Outdoors Inc. has seen its earnings per share (EPS) grow by 16% per year. It achieved revenue growth of 5.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Johnson Outdoors Inc. Been A Good Investment?

We think that the total shareholder return of 92%, over three years, would leave most Johnson Outdoors Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we touched on above, Johnson Outdoors Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, Johnson Outdoors has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Helen deserves a raise!

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Johnson Outdoors that investors should look into moving forward.

Switching gears from Johnson Outdoors, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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