Is PFSweb, Inc.’s (NASDAQ:PFSW) CEO Paid At A Competitive Rate?

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Mike Willoughby has been the CEO of PFSweb, Inc. (NASDAQ:PFSW) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for PFSweb

How Does Mike Willoughby’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that PFSweb, Inc. has a market cap of US$119m, and is paying total annual CEO compensation of US$1.8m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$495k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$297k.

As you can see, Mike Willoughby is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PFSweb, Inc. is paying too much. 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, below, how CEO compensation at PFSweb has changed over time.

NasdaqCM:PFSW CEO Compensation, February 20th 2019
NasdaqCM:PFSW CEO Compensation, February 20th 2019

Is PFSweb, Inc. Growing?

Over the last three years PFSweb, Inc. has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). In the last year, its revenue is down -5.2%.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.

Has PFSweb, Inc. Been A Good Investment?

With a three year total loss of 50%, PFSweb, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at PFSweb, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling PFSweb shares (free trial).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.