Jane Elfers has been the CEO of The Children's Place, Inc. (NASDAQ:PLCE) since 2010. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jane Elfers's Compensation Compare With Similar Sized Companies?
According to our data, The Children's Place, Inc. has a market capitalization of US$1.5b, and pays its CEO total annual compensation worth US$1.2m. (This is based on the year to February 2019). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
A first glance this seems like a real positive for shareholders, since Jane Elfers is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Children's Place, below.
Is The Children's Place, Inc. Growing?
Over the last three years The Children's Place, Inc. has grown its earnings per share (EPS) by an average of 3.4% per year (using a line of best fit). Its revenue is up 2.4% over last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has The Children's Place, Inc. Been A Good Investment?
The Children's Place, Inc. has served shareholders reasonably well, with a total return of 18% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It appears that The Children's Place, Inc. remunerates its CEO below most similar sized companies.
It's well worth noting that while Jane Elfers is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. However I do not find the CEO compensation to be concerning. So you may want to check if insiders are buying Children's Place shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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