This article will reflect on the compensation paid to Patrick Hawkins who has served as CEO of Hawkins, Inc. (NASDAQ:HWKN) since 2011. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Hawkins.
Comparing Hawkins, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Hawkins, Inc. has a market capitalization of US$559m, and reported total annual CEO compensation of US$1.9m for the year to March 2020. Notably, that's an increase of 24% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$500k.
For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$3.8m. This suggests that Patrick Hawkins is paid below the industry median. Moreover, Patrick Hawkins also holds US$7.2m worth of Hawkins stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. It's interesting to note that Hawkins pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Hawkins, Inc.'s Growth Numbers
Over the past three years, Hawkins, Inc. has seen its earnings per share (EPS) grow by 21% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Hawkins, Inc. Been A Good Investment?
We think that the total shareholder return of 45%, over three years, would leave most Hawkins, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we noted earlier, Hawkins pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Considering robust EPS growth, we believe Patrick to be modestly paid. And given most shareholders are probably very happy with recent shareholder returns, they might even think Patrick deserves a raise!
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hawkins (free visualization of insider trades).
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.
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.
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