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How Is Deckers Outdoor's (NYSE:DECK) CEO Compensated?

Simply Wall St

Dave Powers became the CEO of Deckers Outdoor Corporation (NYSE:DECK) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Deckers Outdoor

How Does Total Compensation For Dave Powers Compare With Other Companies In The Industry?

According to our data, Deckers Outdoor Corporation has a market capitalization of US$6.3b, and paid its CEO total annual compensation worth US$6.7m over the year to March 2020. That's a modest increase of 4.4% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the same industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$6.7m. From this we gather that Dave Powers is paid around the median for CEOs in the industry. Moreover, Dave Powers also holds US$36m worth of Deckers Outdoor stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

US$1.1m

US$988k

16%

Other

US$5.7m

US$5.5m

84%

Total Compensation

US$6.7m

US$6.5m

100%

On an industry level, around 31% of total compensation represents salary and 69% is other remuneration. In Deckers Outdoor's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

Deckers Outdoor Corporation's Growth

Over the past three years, Deckers Outdoor Corporation has seen its earnings per share (EPS) grow by 144% per year. Its revenue is up 4.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Deckers Outdoor Corporation Been A Good Investment?

Most shareholders would probably be pleased with Deckers Outdoor Corporation for providing a total return of 245% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Deckers Outdoor Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that earnings per share are up. Indeed, many might consider that Dave is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Deckers Outdoor that investors should look into moving forward.

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.

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. 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.

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