The Compensation For MasterCraft Boat Holdings, Inc.'s (NASDAQ:MCFT) CEO Looks Deserved And Here's Why

We have been pretty impressed with the performance at MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) recently and CEO Fred Brightbill deserves a mention for their role in it. Coming up to the next AGM on 25 October 2022, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

Check out the opportunities and risks within the US Leisure industry.

Comparing MasterCraft Boat Holdings, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that MasterCraft Boat Holdings, Inc. has a market capitalization of US$386m, and reported total annual CEO compensation of US$2.5m for the year to June 2022. We note that's a decrease of 22% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$700k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$2.7m. From this we gather that Fred Brightbill is paid around the median for CEOs in the industry. Furthermore, Fred Brightbill directly owns US$3.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	US$700k	US$700k	28%
Other	US$1.8m	US$2.5m	72%
Total Compensation	US$2.5m	US$3.2m	100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. MasterCraft Boat Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at MasterCraft Boat Holdings, Inc.'s Growth Numbers

MasterCraft Boat Holdings, Inc.'s earnings per share (EPS) grew 41% per year over the last three years. In the last year, its revenue is up 35%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 MasterCraft Boat Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 39% over three years, MasterCraft Boat Holdings, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for MasterCraft Boat Holdings that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.