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Is Hooker Furniture Corporation's (NASDAQ:HOFT) CEO Pay Justified?

Simply Wall St

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Paul Toms became the CEO of Hooker Furniture Corporation (NASDAQ:HOFT) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Hooker Furniture

How Does Paul Toms's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Hooker Furniture Corporation has a market cap of US$321m, and is paying total annual CEO compensation of US$1.5m. (This is based on the year to February 2019). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$415k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.

So Paul Toms receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Hooker Furniture has changed from year to year.

NasdaqGS:HOFT CEO Compensation, June 4th 2019

Is Hooker Furniture Corporation Growing?

On average over the last three years, Hooker Furniture Corporation has grown earnings per share (EPS) by 26% each year (using a line of best fit). Its revenue is up 10.0% over last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has Hooker Furniture Corporation Been A Good Investment?

Hooker Furniture Corporation has served shareholders reasonably well, with a total return of 15% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Remuneration for Paul Toms is close enough to the median pay for a CEO of a similar sized company .

The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hooker Furniture.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.