Christopher Munyan has been the CEO of CSS Industries Inc (NYSE:CSS) since 2006. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Christopher Munyan’s Compensation Compare With Similar Sized Companies?
According to our data, CSS Industries Inc has a market capitalization of US$121m, and pays its CEO total annual compensation worth US$1m. That’s a notable increase of 17% on last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$292k.
It would therefore appear that CSS Industries Inc pays Christopher Munyan 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, below, how CEO compensation at CSS Industries has changed over time.
Is CSS Industries Inc Growing?
On average over the last three years, CSS Industries Inc has shrunk earnings per share by 88% each year. It achieved revenue growth of 20% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has CSS Industries Inc Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in CSS Industries Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by CSS Industries Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. This contrasts with the growth in CEO remuneration, year on year. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CSS Industries Inc.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 firstname.lastname@example.org.