Is Bassett Furniture Industries Incorporated’s (NASDAQ:BSET) CEO Paid Enough Relative To Peers?
Robert Spilman became the CEO of Bassett Furniture Industries Incorporated (NASDAQ:BSET) in 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
View our latest analysis for Bassett Furniture Industries
How Does Robert Spilman’s Compensation Compare With Similar Sized Companies?
According to our data, Bassett Furniture Industries Incorporated has a market capitalization of US$212m, and pays its CEO total annual compensation worth US$950k. (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$400k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$942k.
So Robert Spilman is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Bassett Furniture Industries has changed from year to year.
Is Bassett Furniture Industries Incorporated Growing?
Over the last three years Bassett Furniture Industries Incorporated has shrunk its earnings per share by an average of 11% per year. In the last year, its revenue is up 2.3%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Bassett Furniture Industries Incorporated Been A Good Investment?
Since shareholders would have lost about 31% over three years, some Bassett Furniture Industries Incorporated shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Robert Spilman is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don’t think the CEO is underpaid! So you may want to check if insiders are buying Bassett Furniture Industries shares with their own money (free access).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
