Stock Analysis

Our View On Vista Outdoor's (NYSE:VSTO) CEO Pay

  •  Updated
NYSE:VSTO
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This article will reflect on the compensation paid to Chris Metz who has served as CEO of Vista Outdoor Inc. (NYSE:VSTO) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Vista Outdoor.

See our latest analysis for Vista Outdoor

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

At the time of writing, our data shows that Vista Outdoor Inc. has a market capitalization of US$1.2b, and reported total annual CEO compensation of US$3.9m for the year to March 2020. Notably, that's a decrease of 36% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$1.9m. Accordingly, our analysis reveals that Vista Outdoor Inc. pays Chris Metz north of the industry median. Moreover, Chris Metz also holds US$4.4m worth of Vista Outdoor stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$1.0m US$981k 26%
Other US$2.9m US$5.1m 74%
Total CompensationUS$3.9m US$6.1m100%

On an industry level, roughly 26% of total compensation represents salary and 74% is other remuneration. Vista Outdoor is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NYSE:VSTO CEO Compensation December 18th 2020

A Look at Vista Outdoor Inc.'s Growth Numbers

Over the past three years, Vista Outdoor Inc. has seen its earnings per share (EPS) grow by 10% per year. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Vista Outdoor Inc. Been A Good Investment?

We think that the total shareholder return of 34%, over three years, would leave most Vista Outdoor Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we touched on above, Vista Outdoor Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Chris's performance creates value for the company.

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 1 warning sign for Vista Outdoor that investors should look into moving forward.

Important note: Vista Outdoor 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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