Rocky Brands, Inc.'s (NASDAQ:RCKY) CEO Looks Due For A Compensation Raise

Simply Wall St
May 20, 2021
Source: Shutterstock

Shareholders will be pleased by the impressive results for Rocky Brands, Inc. (NASDAQ:RCKY) recently and CEO Jason Brooks has played a key role. At the upcoming AGM on 26 May 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Rocky Brands

Comparing Rocky Brands, Inc.'s CEO Compensation With the industry

Our data indicates that Rocky Brands, Inc. has a market capitalization of US$392m, and total annual CEO compensation was reported as US$697k for the year to December 2020. Notably, that's an increase of 28% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$341k.

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$1.7m. This suggests that Jason Brooks is paid below the industry median. Furthermore, Jason Brooks directly owns US$548k worth of shares in the company.

Component20202019Proportion (2020)
Salary US$341k US$325k 49%
Other US$356k US$218k 51%
Total CompensationUS$697k US$543k100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. According to our research, Rocky Brands has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NasdaqGS:RCKY CEO Compensation May 20th 2021

A Look at Rocky Brands, Inc.'s Growth Numbers

Rocky Brands, Inc.'s earnings per share (EPS) grew 30% per year over the last three years. In the last year, its revenue is up 19%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Rocky Brands, Inc. Been A Good Investment?

We think that the total shareholder return of 112%, over three years, would leave most Rocky Brands, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Rocky Brands (1 is potentially serious!) that you should be aware of before investing here.

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.

If you decide to trade Rocky Brands, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.