Stephen Berman has been the CEO of JAKKS Pacific Inc (NASDAQ:JAKK) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Stephen Berman’s Compensation Compare With Similar Sized Companies?
Our data indicates that JAKKS Pacific Inc is worth US$54m, and total annual CEO compensation is US$2m. That’s actually a decrease on the year before. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$293k.
Thus we can conclude that Stephen Berman receives more in total compensation than the median of a group of companies in the same market, and of similar size to JAKKS Pacific Inc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at JAKKS Pacific has changed over time.
Is JAKKS Pacific Inc Growing?
Over the last three years JAKKS Pacific Inc has shrunk its earnings per share by an average of 117% per year. It saw its revenue drop -11% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has JAKKS Pacific Inc Been A Good Investment?
Given the total loss of 71% over three years, many shareholders in JAKKS Pacific Inc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount JAKKS Pacific Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if JAKKS Pacific Inc insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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 email@example.com.