Mark Butler became the CEO of Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) in 2003. 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 Mark Butler's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Ollie's Bargain Outlet Holdings, Inc. has a market cap of US$4.1b, and reported total annual CEO compensation of US$4.1m for the year to February 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$795k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
So Mark Butler 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.
You can see, below, how CEO compensation at Ollie's Bargain Outlet Holdings has changed over time.
Is Ollie's Bargain Outlet Holdings, Inc. Growing?
On average over the last three years, Ollie's Bargain Outlet Holdings, Inc. has grown earnings per share (EPS) by 35% each year (using a line of best fit). It achieved revenue growth of 15% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Has Ollie's Bargain Outlet Holdings, Inc. Been A Good Investment?
Boasting a total shareholder return of 161% over three years, Ollie's Bargain Outlet Holdings, Inc. has done well by shareholders. 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.
Mark Butler is paid around the same as most CEOs of similar 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ollie's Bargain Outlet Holdings.
If you want to buy a stock that is better than Ollie's Bargain Outlet Holdings, this free list of high return, low debt companies is a great place to look.
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