In 2001 Menderes Akdag was appointed CEO of PetMed Express, Inc. (NASDAQ:PETS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Menderes Akdag's Compensation Compare With Similar Sized Companies?
According to our data, PetMed Express, Inc. has a market capitalization of US$455m, and paid its CEO total annual compensation worth US$858k over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$600k. 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$1.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at PetMed Express, below.
Is PetMed Express, Inc. Growing?
On average over the last three years, PetMed Express, Inc. has grown earnings per share (EPS) by 14% each year (using a line of best fit). In the last year, its revenue is down 4.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has PetMed Express, Inc. Been A Good Investment?
PetMed Express, Inc. has served shareholders reasonably well, with a total return of 12% over three years. 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.
It appears that PetMed Express, Inc. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Menderes Akdag is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if PetMed Express insiders are buying or selling shares.
Important note: PetMed Express may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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