Here's Why Shareholders Should Examine Smith & Wesson Brands, Inc.'s (NASDAQ:SWBI) CEO Compensation Package More Closely
Key Insights
- Smith & Wesson Brands' Annual General Meeting to take place on 15th of September
- Salary of US$850.0k is part of CEO Mark Smith's total remuneration
- The total compensation is 2,589% higher than the average for the industry
- Smith & Wesson Brands' EPS declined by 53% over the past three years while total shareholder loss over the past three years was 20%
The results at Smith & Wesson Brands, Inc. (NASDAQ:SWBI) have been quite disappointing recently and CEO Mark Smith bears some responsibility for this. At the upcoming AGM on 15th of September, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Smith & Wesson Brands
Comparing Smith & Wesson Brands, Inc.'s CEO Compensation With The Industry
Our data indicates that Smith & Wesson Brands, Inc. has a market capitalization of US$388m, and total annual CEO compensation was reported as US$3.7m for the year to April 2025. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.
In comparison with other companies in the American Leisure industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$138k. Hence, we can conclude that Mark Smith is remunerated higher than the industry median. What's more, Mark Smith holds US$2.2m worth of shares in the company in their own name.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | US$850k | US$743k | 23% |
| Other | US$2.9m | US$2.9m | 77% |
| Total Compensation | US$3.7m | US$3.6m | 100% |
On an industry level, roughly 24% of total compensation represents salary and 76% is other remuneration. There isn't a significant difference between Smith & Wesson Brands and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Smith & Wesson Brands, Inc.'s Growth Numbers
Over the last three years, Smith & Wesson Brands, Inc. has shrunk its earnings per share by 53% per year. It saw its revenue drop 7.6% over the last year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Smith & Wesson Brands, Inc. Been A Good Investment?
Since shareholders would have lost about 20% over three years, some Smith & Wesson Brands, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Smith & Wesson Brands we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.