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Does Weyco Group, Inc.'s (NASDAQ:WEYS) CEO Pay Reflect Performance?

Thomas Florsheim became the CEO of Weyco Group, Inc. (NASDAQ:WEYS) in 1999. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Weyco Group

How Does Thomas Florsheim's Compensation Compare With Similar Sized Companies?

Our data indicates that Weyco Group, Inc. is worth US$261m, and total annual CEO compensation is US$1.3m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$659k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.

That means Thomas Florsheim receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Weyco Group has changed from year to year.

NasdaqGS:WEYS CEO Compensation, August 5th 2019
NasdaqGS:WEYS CEO Compensation, August 5th 2019

Is Weyco Group, Inc. Growing?

On average over the last three years, Weyco Group, Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 6.6% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Weyco Group, Inc. Been A Good Investment?

With a total shareholder return of 13% over three years, Weyco Group, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Thomas Florsheim is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Weyco Group insiders are buying or selling shares.

Important note: Weyco Group 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.

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 editorial-team@simplywallst.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.