Lenny Comma has been the CEO of Jack in the Box Inc. (NASDAQ:JACK) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Lenny Comma’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Jack in the Box Inc. has a market cap of US$2.0b, and is paying total annual CEO compensation of US$5.0m. (This number is for the twelve months until September 2018). That’s just a smallish increase of 6.2% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$920k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.5m.
Thus we can conclude that Lenny Comma receives more in total compensation than the median of a group of companies in the same market, and of similar size to Jack in the Box Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Jack in the Box, below.
Is Jack in the Box Inc. Growing?
Over the last three years Jack in the Box Inc. has grown its earnings per share (EPS) by an average of 8.3% per year (using a line of best fit). It saw its revenue drop -17% over the last year.
I would prefer it if there was revenue growth, but it is good to see EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Jack in the Box Inc. Been A Good Investment?
With a total shareholder return of 25% over three years, Jack in the Box Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by Jack in the Box Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Jack in the Box.
If you want to buy a stock that is better than Jack in the Box, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.