How Does Collectors Universe's (NASDAQ:CLCT) CEO Pay Compare With Company Performance?

Joe Orlando became the CEO of Collectors Universe, Inc. (NASDAQ:CLCT) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Collectors Universe.

See our latest analysis for Collectors Universe

Comparing Collectors Universe, Inc.'s CEO Compensation With the industry

Our data indicates that Collectors Universe, Inc. has a market capitalization of US$829m, and total annual CEO compensation was reported as US$1.6m for the year to June 2020. We note that's an increase of 56% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$363k.

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$3.3m. Accordingly, Collectors Universe pays its CEO under the industry median. Furthermore, Joe Orlando directly owns US$1.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. According to our research, Collectors Universe 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.

Collectors Universe, Inc.'s Growth

Collectors Universe, Inc.'s earnings per share (EPS) grew 5.5% per year over the last three years. Its revenue is up 19% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Collectors Universe, Inc. Been A Good Investment?

Boasting a total shareholder return of 270% over three years, Collectors Universe, Inc. has done well by shareholders. 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, Collectors Universe, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, shareholder returns have been have been very pleasing, over the last three years, and that should put a smile on the faces of investors. Considering this fine result for investors, we believe CEO compensation to be apt.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Collectors Universe that you should be aware of before investing.

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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