In 2014 Andy Thomas was appointed CEO of Craft Brew Alliance, Inc. (NASDAQ:BREW). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Andy Thomas’s Compensation Compare With Similar Sized Companies?
Our data indicates that Craft Brew Alliance, Inc. is worth US$311m, and total annual CEO compensation is US$1.2m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$452k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.6m.
So Andy Thomas receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
The graphic below shows how CEO compensation at Craft Brew Alliance has changed from year to year.
Is Craft Brew Alliance, Inc. Growing?
On average over the last three years, Craft Brew Alliance, Inc. has grown earnings per share (EPS) by 98% each year. Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Has Craft Brew Alliance, Inc. Been A Good Investment?
I think that the total shareholder return of 81%, over three years, would leave most Craft Brew Alliance, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Andy Thomas is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Craft Brew Alliance insiders are buying or selling shares.
If you want to buy a stock that is better than Craft Brew Alliance, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
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 firstname.lastname@example.org.