Jeff Rosenthal has been the CEO of Hibbett Sports Inc (NASDAQ:HIBB) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Rosenthal’s Compensation Compare With Similar Sized Companies?
According to our data, Hibbett Sports Inc has a market capitalization of US$355m, and pays its CEO total annual compensation worth US$1m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$2m.
That means Jeff Rosenthal receives fairly typical remuneration for the CEO of a company that size. 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 Hibbett Sports has changed over time.
Is Hibbett Sports Inc Growing?
On average over the last three years, Hibbett Sports Inc has shrunk earnings per share by 20% each year. In the last year, its revenue is up 4.5%.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Hibbett Sports Inc Been A Good Investment?
With a three year total loss of 43%, Hibbett Sports Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Jeff Rosenthal is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don’t think the CEO is underpaid! So you may want to check if insiders are buying Hibbett Sports Inc shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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 email@example.com.