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In 2007 Steve Hislop was appointed CEO of Chuy’s Holdings, Inc. (NASDAQ:CHUY). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Steve Hislop’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Chuy’s Holdings, Inc. has a market cap of US$392m, and is paying total annual CEO compensation of US$1.3m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$631k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.
That means Steve Hislop receives fairly typical remuneration for the CEO of a company that size. 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 Chuy’s Holdings has changed from year to year.
Is Chuy’s Holdings, Inc. Growing?
On average over the last three years, Chuy’s Holdings, Inc. has grown earnings per share (EPS) by 22% each year (using a line of best fit). In the last year, its revenue is up 12%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Chuy’s Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 20% over three years, some Chuy’s Holdings, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Steve Hislop is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. Shareholders may want to check for free if Chuy’s 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.
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 firstname.lastname@example.org.