How Much Is BJ's Restaurants, Inc. (NASDAQ:BJRI) CEO Getting Paid?

Greg Trojan has been the CEO of BJ's Restaurants, Inc. (NASDAQ:BJRI) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether BJ's Restaurants pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for BJ's Restaurants

How Does Total Compensation For Greg Trojan Compare With Other Companies In The Industry?

Our data indicates that BJ's Restaurants, Inc. has a market capitalization of US$873m, and total annual CEO compensation was reported as US$2.4m for the year to December 2019. We note that's a decrease of 34% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$850k.

In comparison with other companies in the industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.4m. So it looks like BJ's Restaurants compensates Greg Trojan in line with the median for the industry. What's more, Greg Trojan holds US$2.0m worth of shares in the company in their own name.

Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. It's interesting to note that BJ's Restaurants pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at BJ's Restaurants, Inc.'s Growth Numbers

Over the last three years, BJ's Restaurants, Inc. has shrunk its earnings per share by 42% per year. In the last year, its revenue is down 24%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. 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 BJ's Restaurants, Inc. Been A Good Investment?

With a total shareholder return of 9.5% over three years, BJ's Restaurants, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Greg is compensated close to the median for companies of its size, and which belong to the same industry. According to our analysis, BJ's Restaurants is suffering from uninspiring EPS growth, and even though shareholder returns are stable, they are hardly impressive. This doesn't compare well with CEO compensation, which is largely in line with the industry median. We wouldn't go as far as saying CEO compensation is inappropriate, but we don't think the executive is underpaid.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 4 warning signs for BJ's Restaurants that investors should be aware of in a dynamic business environment.

Switching gears from BJ's Restaurants, 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. 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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