Hamilton Beach Brands Holding Company's (NYSE:HBB) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Hamilton Beach Brands Holding will host its Annual General Meeting on 9th of May
• CEO Greg Trepp's total compensation includes salary of US$859.9k
• The total compensation is 58% higher than the average for the industry
• Over the past three years, Hamilton Beach Brands Holding's EPS grew by 0.5% and over the past three years, the total shareholder return was 4.5%

Performance at Hamilton Beach Brands Holding Company (NYSE:HBB) has been reasonably good and CEO Greg Trepp has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Hamilton Beach Brands Holding

Comparing Hamilton Beach Brands Holding Company's CEO Compensation With The Industry

At the time of writing, our data shows that Hamilton Beach Brands Holding Company has a market capitalization of US$285m, and reported total annual CEO compensation of US$4.0m for the year to December 2023. That's a notable increase of 47% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$860k.

In comparison with other companies in the American Consumer Durables industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$2.5m. Accordingly, our analysis reveals that Hamilton Beach Brands Holding Company pays Greg Trepp north of the industry median. Furthermore, Greg Trepp directly owns US$7.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$860k	US$820k	22%
Other	US$3.1m	US$1.9m	78%
Total Compensation	US$4.0m	US$2.7m	100%

Speaking on an industry level, nearly 18% of total compensation represents salary, while the remainder of 82% is other remuneration. Hamilton Beach Brands Holding pays out 22% of remuneration in the form of a salary, significantly higher than the industry average. 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 Hamilton Beach Brands Holding Company's Growth Numbers

Earnings per share at Hamilton Beach Brands Holding Company are much the same as they were three years ago, albeit with slightly higher. It saw its revenue drop 2.4% over the last year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Hamilton Beach Brands Holding Company Been A Good Investment?

With a total shareholder return of 4.5% over three years, Hamilton Beach Brands Holding Company has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Hamilton Beach Brands Holding (1 shouldn't be ignored!) that you should be aware of before investing here.

Important note: Hamilton Beach Brands Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.