In 2001 Efraim Grinberg was appointed CEO of Movado Group, Inc. (NYSE:MOV). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Efraim Grinberg's Compensation Compare With Similar Sized Companies?
According to our data, Movado Group, Inc. has a market capitalization of US$587m, and paid its CEO total annual compensation worth US$5.5m over the year to January 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
As you can see, Efraim Grinberg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Movado Group, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Movado Group, below.
Is Movado Group, Inc. Growing?
Over the last three years Movado Group, Inc. has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). It achieved revenue growth of 17% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Movado Group, Inc. Been A Good Investment?
With a total shareholder return of 24% over three years, Movado Group, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by Movado Group, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Shareholders may want to check for free if Movado Group insiders are buying or selling shares.
If you want to buy a stock that is better than Movado Group, 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 email@example.com. 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.