Movado Group, Inc.'s (NYSE:MOV) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Movado Group to hold its Annual General Meeting on 18th of June
• Salary of US$1.34m is part of CEO Efraim Grinberg's total remuneration
• The total compensation is 2,672% higher than the average for the industry
• Over the past three years, Movado Group's EPS fell by 43% and over the past three years, the total loss to shareholders 40%

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The results at Movado Group, Inc. (NYSE:MOV) have been quite disappointing recently and CEO Efraim Grinberg bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 18th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Movado Group

Comparing Movado Group, Inc.'s CEO Compensation With The Industry

Our data indicates that Movado Group, Inc. has a market capitalization of US$357m, and total annual CEO compensation was reported as US$5.2m for the year to January 2025. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.

For comparison, other companies in the American Luxury industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$187k. This suggests that Efraim Grinberg is paid more than the median for the industry. Furthermore, Efraim Grinberg directly owns US$35m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 17% of total compensation represents salary and 83% is other remuneration. According to our research, Movado Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Movado Group, Inc.'s Growth

Over the last three years, Movado Group, Inc. has shrunk its earnings per share by 43% per year. In the last year, its revenue changed by just 0.5%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Movado Group, Inc. Been A Good Investment?

Few Movado Group, Inc. shareholders would feel satisfied with the return of -40% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 Movado Group (1 doesn't sit too well with us!) that you should be aware of before investing here.

Important note: Movado Group 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.