Does Cracker Barrel Old Country Store, Inc.'s (NASDAQ:CBRL) CEO Salary Compare Well With Others?
In 2011, Sandy Cochran was appointed CEO of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Cracker Barrel Old Country Store
How Does Sandy Cochran's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Cracker Barrel Old Country Store, Inc. has a market cap of US$2.5b, and reported total annual CEO compensation of US$7.0m for the year to August 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$6.0m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Cracker Barrel Old Country Store stands. On a sector level, around 25% of total compensation represents salary and 75% is other remuneration. Cracker Barrel Old Country Store sets aside a smaller share of compensation for salary, in comparison to the overall industry.
That means Sandy Cochran receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at Cracker Barrel Old Country Store, below.
Is Cracker Barrel Old Country Store, Inc. Growing?
Over the last three years Cracker Barrel Old Country Store, Inc. has seen earnings per share (EPS) move in a positive direction by an average of 3.2% per year (using a line of best fit). Its revenue is up 1.4% over last year.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Cracker Barrel Old Country Store, Inc. Been A Good Investment?
Since shareholders would have lost about 28% over three years, some Cracker Barrel Old Country Store, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Sandy Cochran is paid around what is normal for the leaders of comparable size companies.
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. Looking into other areas, we've picked out 3 warning signs for Cracker Barrel Old Country Store that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
