Dave Fetherman has been the CEO of Escalade, Incorporated (NASDAQ:ESCA) since 2015. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dave Fetherman's Compensation Compare With Similar Sized Companies?
Our data indicates that Escalade, Incorporated is worth US$119m, and total annual CEO compensation was reported as US$773k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$309k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$544k.
Thus we can conclude that Dave Fetherman receives more in total compensation than the median of a group of companies in the same market, and of similar size to Escalade, Incorporated. However, this doesn't necessarily mean the pay 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 a visual representation of the CEO compensation at Escalade, below.
Is Escalade, Incorporated Growing?
Earnings per share at Escalade, Incorporated are much the same as they were three years ago, albeit with a positive trend. It achieved revenue growth of 2.7% over the last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Escalade, Incorporated Been A Good Investment?
Since shareholders would have lost about 27% over three years, some Escalade, Incorporated shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Escalade, Incorporated pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Escalade (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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