Wyman Roberts has been the CEO of Brinker International, Inc. (NYSE:EAT) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Wyman Roberts’s Compensation Compare With Similar Sized Companies?
Our data indicates that Brinker International, Inc. is worth US$1.7b, and total annual CEO compensation is US$6.8m. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.7m.
It would therefore appear that Brinker International, Inc. pays Wyman Roberts 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Brinker International has changed from year to year.
Is Brinker International, Inc. Growing?
On average over the last three years, Brinker International, Inc. has shrunk earnings per share by 5.9% each year. In the last year, its revenue changed by just 0.6%.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Brinker International, Inc. Been A Good Investment?
Brinker International, Inc. has generated a total shareholder return of 0.6% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Brinker International, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
While shareholder returns are acceptable, they don’t delight. So you may want to delve deeper, because we don’t think the CEO pay is too low. Shareholders may want to check for free if Brinker International insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past 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 email@example.com.