Rich Stockinger has been the CEO of Fiesta Restaurant Group, Inc. (NASDAQ:FRGI) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Rich Stockinger's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Fiesta Restaurant Group, Inc. has a market cap of US$159m, and reported total annual CEO compensation of US$690k for the year to December 2019. Notably, that's an increase of 25% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$575k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.4m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 26% of total compensation represents salary and 74% is other remuneration. It's interesting to note that Fiesta Restaurant Group pays out a greater portion of remuneration through salary, in comparison to the wider industry.
Most shareholders would consider it a positive that Rich Stockinger takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at Fiesta Restaurant Group has changed from year to year.
Is Fiesta Restaurant Group, Inc. Growing?
On average over the last three years, Fiesta Restaurant Group, Inc. has shrunk earnings per share by 69% each year (measured with a line of best fit). Its revenue is down 4.0% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Fiesta Restaurant Group, Inc. Been A Good Investment?
Since shareholders would have lost about 74% over three years, some Fiesta Restaurant Group, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that Fiesta Restaurant Group, Inc. remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Rich Stockinger is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. This contrasts with the increase in CEO remuneration on last year, though it was off a low base. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for Fiesta Restaurant Group you should be aware of, and 1 of them is significant.
Important note: Fiesta Restaurant Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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