In 2014 Russ Bendel was appointed CEO of The Habit Restaurants, Inc. (NASDAQ:HABT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 Russ Bendel's Compensation Compare With Similar Sized Companies?
Our data indicates that The Habit Restaurants, Inc. is worth US$223m, and total annual CEO compensation is US$1.5m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$747k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.2m.
That means Russ Bendel 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.
You can see a visual representation of the CEO compensation at Habit Restaurants, below.
Is The Habit Restaurants, Inc. Growing?
The Habit Restaurants, Inc. has reduced its earnings per share by an average of 56% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 19% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has The Habit Restaurants, Inc. Been A Good Investment?
Since shareholders would have lost about 44% over three years, some The Habit Restaurants, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Russ Bendel is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying Habit Restaurants shares with their own money (free access).
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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