Here's Why We Think Shoe Carnival, Inc.'s (NASDAQ:SCVL) CEO Compensation Looks Fair for the time being

Key Insights

• Shoe Carnival's Annual General Meeting to take place on 25th of June
• Salary of US$1.00m is part of CEO Mark Worden's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Shoe Carnival's EPS grew by 0.7% and over the past three years, the total shareholder return was 12%

CEO Mark Worden has done a decent job of delivering relatively good performance at Shoe Carnival, Inc. (NASDAQ:SCVL) recently. As shareholders go into the upcoming AGM on 25th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Shoe Carnival

How Does Total Compensation For Mark Worden Compare With Other Companies In The Industry?

Our data indicates that Shoe Carnival, Inc. has a market capitalization of US$1.0b, and total annual CEO compensation was reported as US$3.5m for the year to February 2024. Notably, that's a decrease of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On comparing similar companies from the American Specialty Retail industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$4.7m. From this we gather that Mark Worden is paid around the median for CEOs in the industry. What's more, Mark Worden holds US$2.8m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$850k	29%
Other	US$2.5m	US$3.2m	71%
Total Compensation	US$3.5m	US$4.0m	100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. According to our research, Shoe Carnival has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Shoe Carnival, Inc.'s Growth Numbers

Earnings per share at Shoe Carnival, Inc. are much the same as they were three years ago, albeit with slightly higher. Its revenue is down 2.4% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Shoe Carnival, Inc. Been A Good Investment?

Shoe Carnival, Inc. has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Shoe Carnival that investors should be aware of in a dynamic business environment.

Important note: Shoe Carnival is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com