Shareholders Will Probably Hold Off On Increasing Barnes & Noble Education, Inc.'s (NYSE:BNED) CEO Compensation For The Time Being

Performance at Barnes & Noble Education, Inc. (NYSE:BNED) has been reasonably good and CEO Mike Huseby has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23 September 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Barnes & Noble Education

How Does Total Compensation For Mike Huseby Compare With Other Companies In The Industry?

At the time of writing, our data shows that Barnes & Noble Education, Inc. has a market capitalization of US$571m, and reported total annual CEO compensation of US$4.2m for the year to May 2021. We note that's an increase of 26% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$2.2m. Hence, we can conclude that Mike Huseby is remunerated higher than the industry median. Moreover, Mike Huseby also holds US$6.2m worth of Barnes & Noble Education stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	US$1.0m	US$1.1m	24%
Other	US$3.2m	US$2.3m	76%
Total Compensation	US$4.2m	US$3.4m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. According to our research, Barnes & Noble Education has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Barnes & Noble Education, Inc.'s Growth

Barnes & Noble Education, Inc.'s earnings per share (EPS) grew 13% per year over the last three years. It saw its revenue drop 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Barnes & Noble Education, Inc. Been A Good Investment?

We think that the total shareholder return of 92%, over three years, would leave most Barnes & Noble Education, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 4 warning signs for Barnes & Noble Education that you should be aware of before investing.

Important note: Barnes & Noble Education 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.
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