In 2016 Brent Willis was appointed CEO of New Age Beverages Corporation (NASDAQ:NBEV). 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 Brent Willis's Compensation Compare With Similar Sized Companies?
Our data indicates that New Age Beverages Corporation is worth US$153m, and total annual CEO compensation was reported as US$363k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$313k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
Most shareholders would consider it a positive that Brent Willis takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at New Age Beverages, below.
Is New Age Beverages Corporation Growing?
New Age Beverages Corporation has reduced its earnings per share by an average of 39% a year, over the last three years (measured with a line of best fit). Its revenue is up 322% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has New Age Beverages Corporation Been A Good Investment?
Given the total loss of 57% over three years, many shareholders in New Age Beverages Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
It looks like New Age Beverages Corporation pays its CEO less than similar sized companies.
Brent Willis is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling New Age Beverages (free visualization of insider trades).
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.
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.
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. Thank you for reading.