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Dan Accordino has been the CEO of Carrols Restaurant Group, Inc. (NASDAQ:TAST) since 2012. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Dan Accordino's Compensation Compare With Similar Sized Companies?
According to our data, Carrols Restaurant Group, Inc. has a market capitalization of US$378m, and pays its CEO total annual compensation worth US$3.7m. (This figure is for the year to December 2018). That's a notable increase of 10% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$838k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.
It would therefore appear that Carrols Restaurant Group, Inc. pays Dan Accordino more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Carrols Restaurant Group has changed from year to year.
Is Carrols Restaurant Group, Inc. Growing?
Over the last three years Carrols Restaurant Group, Inc. has shrunk its earnings per share by an average of 45% per year (measured with a line of best fit). Its revenue is up 7.0% over last year.
Sadly for shareholders, earnings per share are actually down, over 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Carrols Restaurant Group, Inc. Been A Good Investment?
Given the total loss of 31% over three years, many shareholders in Carrols Restaurant Group, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Carrols Restaurant Group, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. This contrasts with the growth in CEO remuneration, year on year. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Carrols Restaurant Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.