Should You Be Pleased About The CEO Pay At DICK'S Sporting Goods, Inc.'s (NYSE:DKS)

Ed Stack became the CEO of DICK'S Sporting Goods, Inc. (NYSE:DKS) in 1984. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

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See our latest analysis for DICK'S Sporting Goods

How Does Ed Stack's Compensation Compare With Similar Sized Companies?

Our data indicates that DICK'S Sporting Goods, Inc. is worth US$3.5b, and total annual CEO compensation is US$9.1m. (This figure is for the year to February 2019). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.3m.

It would therefore appear that DICK'S Sporting Goods, Inc. pays Ed Stack more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at DICK'S Sporting Goods, below.

Is DICK'S Sporting Goods, Inc. Growing?

DICK'S Sporting Goods, Inc. has increased its earnings per share (EPS) by an average of 5.9% a year, over the last three years (using a line of best fit). Its revenue is down -1.8% over last year.

I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.

Has DICK'S Sporting Goods, Inc. Been A Good Investment?

Given the total loss of 7.8% over three years, many shareholders in DICK'S Sporting Goods, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by DICK'S Sporting Goods, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at DICK'S Sporting Goods.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.