Shareholders May Be Wary Of Increasing Foot Locker, Inc.'s (NYSE:FL) CEO Compensation Package

Key Insights

• Foot Locker's Annual General Meeting to take place on 21st of May
• Total pay for CEO Mary Dillon includes US$1.43m salary
• The total compensation is 45% higher than the average for the industry
• Over the past three years, Foot Locker's EPS fell by 72% and over the past three years, the total loss to shareholders 55%

We've discovered 1 warning sign about Foot Locker. View them for free.

Shareholders will probably not be too impressed with the underwhelming results at Foot Locker, Inc. (NYSE:FL) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 21st of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Foot Locker

How Does Total Compensation For Mary Dillon Compare With Other Companies In The Industry?

At the time of writing, our data shows that Foot Locker, Inc. has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$13m for the year to February 2025. That's a notable decrease of 15% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.

For comparison, other companies in the American Specialty Retail industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$8.6m. Hence, we can conclude that Mary Dillon is remunerated higher than the industry median. Moreover, Mary Dillon also holds US$811k worth of Foot Locker stock directly under their own name.

Component	2025	2024	Proportion (2025)
Salary	US$1.4m	US$1.3m	11%
Other	US$11m	US$13m	89%
Total Compensation	US$13m	US$15m	100%

Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. Foot Locker pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Foot Locker, Inc.'s Growth Numbers

Foot Locker, Inc. has reduced its earnings per share by 72% a year over the last three years. In the last year, its revenue is down 2.2%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Foot Locker, Inc. Been A Good Investment?

The return of -55% over three years would not have pleased Foot Locker, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Foot Locker that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.