Chris McCann has been the CEO of 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Chris McCann's Compensation Compare With Similar Sized Companies?
According to our data, 1-800-FLOWERS.COM, Inc. has a market capitalization of US$1.2b, and pays its CEO total annual compensation worth US$1.5m. (This figure is for the year to July 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$775k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at 1-800-FLOWERS.COM has changed over time.
Is 1-800-FLOWERS.COM, Inc. Growing?
On average over the last three years, 1-800-FLOWERS.COM, Inc. has grown earnings per share (EPS) by 8.0% each year (using a line of best fit). It achieved revenue growth of 5.0% over the last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has 1-800-FLOWERS.COM, Inc. Been A Good Investment?
Most shareholders would probably be pleased with 1-800-FLOWERS.COM, Inc. for providing a total return of 149% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that 1-800-FLOWERS.COM, Inc. remunerates its CEO below most similar sized companies.
Chris McCann receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying 1-800-FLOWERS.COM shares with their own money (free access).
If you want to buy a stock that is better than 1-800-FLOWERS.COM, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.