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The CEO of Bridgford Foods Corporation (NASDAQ:BRID) is William Bridgford. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does William Bridgford's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bridgford Foods Corporation has a market cap of US$270m, and is paying total annual CEO compensation of US$589k. (This number is for the twelve months until November 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$287k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.
Most shareholders would consider it a positive that William Bridgford takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Bridgford Foods has changed over time.
Is Bridgford Foods Corporation Growing?
Bridgford Foods Corporation has reduced its earnings per share by an average of 23% a year, over the last three years (measured with a line of best fit). Its revenue is up 5.6% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bridgford Foods Corporation Been A Good Investment?
I think that the total shareholder return of 134%, over three years, would leave most Bridgford Foods Corporation shareholders smiling. 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.
Bridgford Foods Corporation is currently paying its CEO below what is normal for companies of its size.
William Bridgford receives relatively low remuneration compared to similar sized companies. And while the company isn't growing earnings per share, total returns have been pleasing. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. So you may want to check if insiders are buying Bridgford Foods shares with their own money (free access).
If you want to buy a stock that is better than Bridgford Foods, this free list of high return, low debt companies is a great place to look.
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 email@example.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.