Nick Caporella has been the CEO of National Beverage Corp. (NASDAQ:FIZZ) since 1985. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Nick Caporella’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that National Beverage Corp. has a market cap of US$2.0b. The Company is party to a management agreement with CMA, a management company owned by Mr. Nick Caporella, in which Mr Caporella receives his compensation through the management company and isn’t compensated directly by the company (National Beverage Corp). The management fee paid to CMA for the year to April 2019 was US$10m and Mr Caporella’s compensation was included within this management fee.
We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how the management fees paid to the CEO-owned company has changed from year to year.
Is National Beverage Corp. Growing?
Over the last three years National Beverage Corp. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). Its revenue is down 4.8% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has National Beverage Corp. Been A Good Investment?
Given the total loss of 19% over three years, many shareholders in National Beverage Corp. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Given that the company doesn’t report total annual CEO compensation separately, we used the management fees paid to CMA as a proxy.
While the earnings per share growth over three years is certainly impressive, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling National Beverage (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.