Jeff Rosenthal has been the CEO of Hibbett Sports, Inc. (NASDAQ:HIBB) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Jeff Rosenthal’s Compensation Compare With Similar Sized Companies?
According to our data, Hibbett Sports, Inc. has a market capitalization of US$263m, and pays its CEO total annual compensation worth US$1.2m. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$515k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$973k.
So Jeff Rosenthal receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Hibbett Sports has changed over time.
Is Hibbett Sports, Inc. Growing?
Over the last three years Hibbett Sports, Inc. has shrunk its earnings per share by an average of 23% per year. Its revenue is up 2.1% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Hibbett Sports, Inc. Been A Good Investment?
With a three year total loss of 54%, Hibbett Sports, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Jeff Rosenthal is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if Hibbett Sports insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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 email@example.com.