How Should Investors React To Wolverine World Wide, Inc.'s (NYSE:WWW) CEO Pay?
Blake Krueger has been the CEO of Wolverine World Wide, Inc. (NYSE:WWW) since 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Wolverine World Wide
How Does Blake Krueger's Compensation Compare With Similar Sized Companies?
Our data indicates that Wolverine World Wide, Inc. is worth US$2.7b, and total annual CEO compensation was reported as US$8.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
As you can see, Blake Krueger is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Wolverine World Wide, 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 Wolverine World Wide has changed over time.
Is Wolverine World Wide, Inc. Growing?
Over the last three years Wolverine World Wide, Inc. has grown its earnings per share (EPS) by an average of 39% per year (using a line of best fit). In the last year, its revenue changed by just 0.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Wolverine World Wide, Inc. Been A Good Investment?
I think that the total shareholder return of 44%, over three years, would leave most Wolverine World Wide, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Wolverine World Wide, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Wolverine World Wide insiders are buying or selling shares.
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 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.
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