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In 2000 Steven Miller was appointed CEO of Big 5 Sporting Goods Corporation (NASDAQ:BGFV). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Steven Miller’s Compensation Compare With Similar Sized Companies?
According to our data, Big 5 Sporting Goods Corporation has a market capitalization of US$57m, and pays its CEO total annual compensation worth US$911k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$550k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$429k.
As you can see, Steven Miller is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Big 5 Sporting Goods Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Big 5 Sporting Goods has changed over time.
Is Big 5 Sporting Goods Corporation Growing?
On average over the last three years, Big 5 Sporting Goods Corporation has shrunk earnings per share by 68% each year (measured with a line of best fit). In the last year, its revenue is down -2.2%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Big 5 Sporting Goods Corporation Been A Good Investment?
Given the total loss of 75% over three years, many shareholders in Big 5 Sporting Goods Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Big 5 Sporting Goods Corporation, 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.We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Big 5 Sporting Goods.
If you want to buy a stock that is better than Big 5 Sporting Goods, 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.