In 2012 Terry McNew was appointed CEO of MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Terry McNew's Compensation Compare With Similar Sized Companies?
According to our data, MasterCraft Boat Holdings, Inc. has a market capitalization of US$291m, and pays its CEO total annual compensation worth US$1.4m. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$415k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
So Terry McNew receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at MasterCraft Boat Holdings has changed from year to year.
Is MasterCraft Boat Holdings, Inc. Growing?
MasterCraft Boat Holdings, Inc. has increased its earnings per share (EPS) by an average of 46% a year, over the last three years (using a line of best fit). Its revenue is up 49% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has MasterCraft Boat Holdings, Inc. Been A Good Investment?
MasterCraft Boat Holdings, Inc. has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Terry McNew is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if MasterCraft Boat Holdings insiders are buying or selling shares.
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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