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In 2011 Sandy Cochran was appointed CEO of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Sandy Cochran's Compensation Compare With Similar Sized Companies?
According to our data, Cracker Barrel Old Country Store, Inc. has a market capitalization of US$3.9b, and pays its CEO total annual compensation worth US$6.2m. (This is based on the year to August 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. 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$4.9m.
So Sandy Cochran 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 Cracker Barrel Old Country Store has changed over time.
Is Cracker Barrel Old Country Store, Inc. Growing?
Cracker Barrel Old Country Store, Inc. has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). Its revenue is up 4.6% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Cracker Barrel Old Country Store, Inc. Been A Good Investment?
Cracker Barrel Old Country Store, Inc. has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Sandy Cochran 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. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Cracker Barrel Old Country Store shares with their own money (free access).
If you want to buy a stock that is better than Cracker Barrel Old Country Store, this free list of high return, low debt companies is a great place to look.
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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.