Blake Krueger became the CEO of Wolverine World Wide, Inc. (NYSE:WWW) in 2007. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Blake Krueger's Compensation Compare With Similar Sized Companies?
Our data indicates that Wolverine World Wide, Inc. is worth US$3.3b, and total annual CEO compensation is US$8.9m. (This is based on the year to December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.0m.
As you can see, Blake Krueger is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Wolverine World Wide, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Wolverine World Wide has changed from year to year.
Is Wolverine World Wide, Inc. Growing?
Over the last three years, Wolverine World Wide, Inc. has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. Its revenue is down -4.8% over last year.
The lack of earnings per share growth in the last three years is unimpressive. This is compounded by the fact revenue is actually down on last year. 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 Wolverine World Wide, Inc. Been A Good Investment?
I think that the total shareholder return of 94%, over three years, would leave most Wolverine World Wide, Inc. shareholders smiling. 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.
We examined the amount Wolverine World Wide, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
But clearly there are some positives, because investors have done well over the same time frame. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wolverine World Wide.
If you want to buy a stock that is better than Wolverine World Wide, this free list of high return, low debt companies is a great place to look.
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