Dan Accordino has been the CEO of Carrols Restaurant Group, Inc. (NASDAQ:TAST) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Carrols Restaurant Group, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Carrols Restaurant Group, Inc. has a market capitalization of US$367m, and reported total annual CEO compensation of US$2.3m for the year to December 2019. Notably, that's a decrease of 37% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$863k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$2.2m. So it looks like Carrols Restaurant Group compensates Dan Accordino in line with the median for the industry. Furthermore, Dan Accordino directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. It's interesting to note that Carrols Restaurant Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Carrols Restaurant Group, Inc.'s Growth Numbers
Carrols Restaurant Group, Inc. has reduced its earnings per share by 119% a year over the last three years. It achieved revenue growth of 21% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Carrols Restaurant Group, Inc. Been A Good Investment?
With a three year total loss of 39% for the shareholders, Carrols Restaurant Group, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Carrols Restaurant Group, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Still, the company is logging healthy revenue growth over the last year. Contrarily, shareholder returns are in the red over the same stretch. EPS is also not growing, undoubtedly leading to further headaches. It's tough for us to say Dan is overpaid but a mixed bag in terms of performance will surely irk shareholders and reduce chances of a raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Carrols Restaurant Group that investors should look into moving forward.
Important note: Carrols Restaurant Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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