How Much Did Genesco Inc.'s (NYSE:GCO) CEO Pocket Last Year?
In 2008 Bob Dennis was appointed CEO of Genesco Inc. (NYSE:GCO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Genesco
How Does Bob Dennis's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Genesco Inc. has a market cap of US$659m, and is paying total annual CEO compensation of US$5.1m. (This figure is for the year to February 2019). We note that's an increase of 92% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$903k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
As you can see, Bob Dennis is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Genesco Inc. is paying too much. 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 Genesco has changed over time.
Is Genesco Inc. Growing?
On average over the last three years, Genesco Inc. has shrunk earnings per share by 1.5% each year (measured with a line of best fit). Its revenue is up 11% over last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Genesco Inc. Been A Good Investment?
Given the total loss of 41% over three years, many shareholders in Genesco Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by Genesco Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that 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. And we'd be remiss not to note that the CEO remuneration has increased on last year. In our opinion the CEO might be paid too generously! So you may want to check if insiders are buying Genesco 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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
