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Sandy Cochran has been the CEO of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) since 2011, 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.
How Does Total Compensation For Sandy Cochran Compare With Other Companies In The Industry?
According to our data, Cracker Barrel Old Country Store, Inc. has a market capitalization of US$3.0b, and paid its CEO total annual compensation worth US$6.2m over the year to July 2020. That's a notable decrease of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$982k.
On comparing similar companies from the same industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.2m. This suggests that Cracker Barrel Old Country Store remunerates its CEO largely in line with the industry average. What's more, Sandy Cochran holds US$16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. In Cracker Barrel Old Country Store's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Cracker Barrel Old Country Store, Inc.'s Growth
Over the last three years, Cracker Barrel Old Country Store, Inc. has shrunk its earnings per share by 29% per year. In the last year, its revenue is down 18%.
Overall this is not a very positive result for shareholders. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Cracker Barrel Old Country Store, Inc. Been A Good Investment?
Given the total shareholder loss of 9.6% over three years, many shareholders in Cracker Barrel Old Country Store, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Cracker Barrel Old Country Store, 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. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Cracker Barrel Old Country Store that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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