In 2015 Marcus Smith was appointed CEO of Speedway Motorsports Inc (NYSE:TRK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Marcus Smith’s Compensation Compare With Similar Sized Companies?
According to our data, Speedway Motorsports Inc has a market capitalization of US$722m, and pays its CEO total annual compensation worth US$2.4m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.3m.
So Marcus Smith receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Speedway Motorsports has changed over time.
Is Speedway Motorsports Inc Growing?
Speedway Motorsports Inc has increased its earnings per share (EPS) by an average of 99% a year, over the last three years It achieved revenue growth of 9.0% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Speedway Motorsports Inc Been A Good Investment?
Speedway Motorsports Inc has not done too badly by shareholders, with a total return of 0.2%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Marcus Smith is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.