In 1999 Helen Johnson-Leipold was appointed CEO of Johnson Outdoors Inc. (NASDAQ:JOUT). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Johnson Outdoors
How Does Helen Johnson-Leipold's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Johnson Outdoors Inc. has a market cap of US$597m, and reported total annual CEO compensation of US$2.7m for the year to September 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$729k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.
As you can see, Helen Johnson-Leipold is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Johnson Outdoors Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Johnson Outdoors has changed from year to year.
Is Johnson Outdoors Inc. Growing?
On average over the last three years, Johnson Outdoors Inc. has grown earnings per share (EPS) by 33% each year (using a line of best fit). Revenue was pretty flat on last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. 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?
Most shareholders would probably be pleased with Johnson Outdoors Inc. for providing a total return of 74% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount Johnson Outdoors Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Johnson Outdoors shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.