Brent Willis became the CEO of New Age Beverages Corporation (NASDAQ:NBEV) in 2016. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Brent Willis’s Compensation Compare With Similar Sized Companies?
According to our data, New Age Beverages Corporation has a market capitalization of US$413m, and pays its CEO total annual compensation worth US$200k. (This figure is for the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$200k. 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$1.5m.
Most shareholders would consider it a positive that Brent Willis takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at New Age Beverages, below.
Is New Age Beverages Corporation Growing?
On average over the last three years, New Age Beverages Corporation has shrunk earnings per share by 45% each year (measured with a line of best fit). In the last year, its revenue is down -4.0%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has New Age Beverages Corporation Been A Good Investment?
Most shareholders would probably be pleased with New Age Beverages Corporation for providing a total return of 1818% over three years. 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.
It appears that New Age Beverages Corporation remunerates its CEO below most similar sized companies.
Brent Willis receives relatively low remuneration compared to similar sized companies. And while the company isn’t growing earnings per share, total returns have been pleasing. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at New Age Beverages.
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.
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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.