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Brett Heffes has been the CEO of Winmark Corporation (NASDAQ:WINA) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Brett Heffes's Compensation Compare With Similar Sized Companies?
According to our data, Winmark Corporation has a market capitalization of US$675m, and paid its CEO total annual compensation worth US$950k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$315k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.8m.
A first glance this seems like a real positive for shareholders, since Brett Heffes is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Winmark has changed over time.
Is Winmark Corporation Growing?
Over the last three years Winmark Corporation has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue changed by just 0.1%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Winmark Corporation Been A Good Investment?
Most shareholders would probably be pleased with Winmark Corporation for providing a total return of 72% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Winmark Corporation is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Brett Heffes 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. Shareholders may want to check for free if Winmark insiders are buying or selling shares.
If you want to buy a stock that is better than Winmark, this free list of high return, low debt companies is a great place to look.
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 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.