Steve Rendle has been the CEO of V.F. Corporation (NYSE:VFC) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether V.F pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Steve Rendle Compare With Other Companies In The Industry?
According to our data, V.F. Corporation has a market capitalization of US$31b, and paid its CEO total annual compensation worth US$17m over the year to March 2020. That's a slight decrease of 7.0% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. Accordingly, our analysis reveals that V.F. Corporation pays Steve Rendle north of the industry median. Furthermore, Steve Rendle directly owns US$23m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. V.F pays a modest slice of remuneration through salary, as compared to the broader industry. 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 V.F. Corporation's Growth Numbers
V.F. Corporation has reduced its earnings per share by 27% a year over the last three years. Its revenue is down 13% over the previous year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has V.F. Corporation Been A Good Investment?
V.F. Corporation has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As we touched on above, V.F. Corporation is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look great when you realize that the company has been suffering from negative EPS growth for the last three years. And while shareholder returns have been respectable, they have hardly been superb. So you can understand why we do not think CEO compensation is particularly modest!
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 did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in V.F we think you should know about.
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.
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This article by Simply Wall St is general in nature. 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.
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