Sturm, Ruger & Company, Inc.'s (NYSE:RGR) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Sturm Ruger's Annual General Meeting to take place on 30th of May
• Salary of US$793.8k is part of CEO Chris Killoy's total remuneration
• The total compensation is 879% higher than the average for the industry
• Over the past three years, Sturm Ruger's EPS fell by 29% and over the past three years, the total loss to shareholders 33%

Shareholders will probably not be too impressed with the underwhelming results at Sturm, Ruger & Company, Inc. (NYSE:RGR) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 30th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Sturm Ruger

How Does Total Compensation For Chris Killoy Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sturm, Ruger & Company, Inc. has a market capitalization of US$753m, and reported total annual CEO compensation of US$3.4m for the year to December 2023. 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$794k.

In comparison with other companies in the American Leisure industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$345k. Hence, we can conclude that Chris Killoy is remunerated higher than the industry median. What's more, Chris Killoy holds US$5.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$794k	US$750k	23%
Other	US$2.6m	US$2.6m	77%
Total Compensation	US$3.4m	US$3.3m	100%

On an industry level, around 30% of total compensation represents salary and 70% is other remuneration. Sturm Ruger pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Sturm, Ruger & Company, Inc.'s Growth Numbers

Sturm, Ruger & Company, Inc. has reduced its earnings per share by 29% a year over the last three years. In the last year, its revenue is down 8.3%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. 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 Sturm, Ruger & Company, Inc. Been A Good Investment?

The return of -33% over three years would not have pleased Sturm, Ruger & Company, Inc. shareholders. 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 a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Sturm Ruger that investors should look into moving forward.

Switching gears from Sturm Ruger, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.