Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Todd Teske has been the CEO of Briggs & Stratton Corporation (NYSE:BGG) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Todd Teske's Compensation Compare With Similar Sized Companies?
Our data indicates that Briggs & Stratton Corporation is worth US$408m, and total annual CEO compensation is US$3.5m. (This is based on the year to July 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$958k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
Thus we can conclude that Todd Teske receives more in total compensation than the median of a group of companies in the same market, and of similar size to Briggs & Stratton Corporation. However, this doesn't necessarily mean the pay is too high. 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 Briggs & Stratton has changed from year to year.
Is Briggs & Stratton Corporation Growing?
Briggs & Stratton Corporation has reduced its earnings per share by an average of 81% a year, over the last three years (measured with a line of best fit). In the last year, its revenue changed by just 0.7%.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Briggs & Stratton Corporation Been A Good Investment?
Given the total loss of 52% over three years, many shareholders in Briggs & Stratton Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Briggs & Stratton Corporation 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.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! So you may want to check if insiders are buying Briggs & Stratton shares with their own money (free access).
If you want to buy a stock that is better than Briggs & Stratton, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.