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Is FirstCash Inc (NASDAQ:FCFS) Excessively Paying Its CEO?

Rick Wessel has been the CEO of FirstCash Inc (NASDAQ:FCFS) since 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.

Check out our latest analysis for FirstCash

How Does Rick Wessel’s Compensation Compare With Similar Sized Companies?

According to our data, FirstCash Inc has a market capitalization of US$3.8b, and pays its CEO total annual compensation worth US$6.2m. That’s actually a decrease on the year before. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.1m.

So Rick Wessel is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at FirstCash, below.

NasdaqGS:FCFS CEO Compensation November 23rd 18
NasdaqGS:FCFS CEO Compensation November 23rd 18

Is FirstCash Inc Growing?

FirstCash Inc has increased its earnings per share (EPS) by an average of 23% a year, over the last three years In the last year, its revenue is up 1.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

You might want to check this free visual report on analyst forecasts for future earnings.

Has FirstCash Inc Been A Good Investment?

I think that the total shareholder return of 128%, over three years, would leave most FirstCash Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Rick Wessel is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance!

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.