Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Stuart Grimshaw became the CEO of EZCORP, Inc. (NASDAQ:EZPW) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Stuart Grimshaw's Compensation Compare With Similar Sized Companies?
According to our data, EZCORP, Inc. has a market capitalization of US$543m, and pays its CEO total annual compensation worth US$7.5m. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
As you can see, Stuart Grimshaw is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean EZCORP, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at EZCORP has changed over time.
Is EZCORP, Inc. Growing?
Over the last three years EZCORP, Inc. has grown its earnings per share (EPS) by an average of 91% per year (using a line of best fit). Its revenue is up 8.4% over last year.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has EZCORP, Inc. Been A Good Investment?
EZCORP, Inc. has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by EZCORP, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. So you may want to check if insiders are buying EZCORP shares with their own money (free access).
If you want to buy a stock that is better than EZCORP, 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 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.