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Garry Ridge became the CEO of WD-40 Company (NASDAQ:WDFC) in 1997. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Garry Ridge's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that WD-40 Company has a market cap of US$2.2b, and is paying total annual CEO compensation of US$2.4m. (This is based on the year to August 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$649k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
A first glance this seems like a real positive for shareholders, since Garry Ridge is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at WD-40, below.
Is WD-40 Company Growing?
WD-40 Company has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.7%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has WD-40 Company Been A Good Investment?
Boasting a total shareholder return of 49% over three years, WD-40 Company has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that WD-40 Company remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Garry Ridge deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling WD-40 shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.