How Much Did Foot Locker, Inc.'s (NYSE:FL) CEO Pocket Last Year?
Dick Johnson has been the CEO of Foot Locker, Inc. (NYSE:FL) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Foot Locker
How Does Dick Johnson's Compensation Compare With Similar Sized Companies?
According to our data, Foot Locker, Inc. has a market capitalization of US$3.0b, and paid its CEO total annual compensation worth US$13m over the year to February 2019. While we always look at total compensation first, we note that the salary component is less, at US$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
Thus we can conclude that Dick Johnson receives more in total compensation than the median of a group of companies in the same market, and of similar size to Foot Locker, Inc.. However, this doesn't necessarily mean the pay 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.
You can see, below, how CEO compensation at Foot Locker has changed over time.
Is Foot Locker, Inc. Growing?
On average over the last three years, Foot Locker, Inc. has grown earnings per share (EPS) by 2.8% each year (using a line of best fit). Revenue was pretty flat on last year.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Foot Locker, Inc. Been A Good Investment?
Given the total loss of 59% over three years, many shareholders in Foot Locker, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Foot Locker, 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for Foot Locker you should be aware of, and 1 of them can't be ignored.
If you want to buy a stock that is better than Foot Locker, this free list of high return, low debt companies is a great place to look.
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