Jim Bernau became the CEO of Willamette Valley Vineyards Inc (NASDAQ:WVVI) in 1988. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jim Bernau’s Compensation Compare With Similar Sized Companies?
According to our data, Willamette Valley Vineyards Inc has a market capitalization of US$36m, and pays its CEO total annual compensation worth US$521k. That’s below the compensation, last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$292k.
Thus we can conclude that Jim Bernau receives more in total compensation than the median of a group of companies in the same market, and of similar size to Willamette Valley Vineyards Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Willamette Valley Vineyards has changed from year to year.
Is Willamette Valley Vineyards Inc Growing?
Willamette Valley Vineyards Inc has increased its earnings per share (EPS) by an average of 5.4% a year, over the last three years It achieved revenue growth of 4.8% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Willamette Valley Vineyards Inc Been A Good Investment?
Willamette Valley Vineyards Inc has not done too badly by shareholders, with a total return of 0.1%, 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.
We compared total CEO remuneration at Willamette Valley Vineyards Inc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
We generally prefer to see stronger EPS growth, and we’re not particularly impressed with the total shareholder return, over the last three years. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.