Key Things To Understand About Helen of Troy's (NASDAQ:HELE) CEO Pay Cheque
Julien Mininberg has been the CEO of Helen of Troy Limited (NASDAQ:HELE) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Helen of Troy.
See our latest analysis for Helen of Troy
Comparing Helen of Troy Limited's CEO Compensation With the industry
According to our data, Helen of Troy Limited has a market capitalization of US$5.7b, and paid its CEO total annual compensation worth US$9.4m over the year to February 2020. That's a notable increase of 42% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.
On comparing similar companies from the same industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$9.7m. From this we gather that Julien Mininberg is paid around the median for CEOs in the industry. Moreover, Julien Mininberg also holds US$25m worth of Helen of Troy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$1.0m | US$1.0m | 11% |
Other | US$8.4m | US$5.6m | 89% |
Total Compensation | US$9.4m | US$6.6m | 100% |
On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. It's interesting to note that Helen of Troy allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Helen of Troy Limited's Growth
Helen of Troy Limited's earnings per share (EPS) grew 15% per year over the last three years. Its revenue is up 23% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Helen of Troy Limited Been A Good Investment?
Most shareholders would probably be pleased with Helen of Troy Limited for providing a total return of 161% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As previously discussed, Julien is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Julien is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
Whatever your view on compensation, you might want to check if insiders are buying or selling Helen of Troy shares (free trial).
Switching gears from Helen of Troy, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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