How Much Is Staffing 360 Solutions, Inc. (NASDAQ:STAF) Paying Its CEO?
This article will reflect on the compensation paid to Brendan Flood who has served as CEO of Staffing 360 Solutions, Inc. (NASDAQ:STAF) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Staffing 360 Solutions.
Check out our latest analysis for Staffing 360 Solutions
Comparing Staffing 360 Solutions, Inc.'s CEO Compensation With the industry
According to our data, Staffing 360 Solutions, Inc. has a market capitalization of US$9.4m, and paid its CEO total annual compensation worth US$391k over the year to December 2019. We note that's a decrease of 34% compared to last year. Notably, the salary which is US$357.2k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$750k. This suggests that Brendan Flood is paid below the industry median. Moreover, Brendan Flood also holds US$281k worth of Staffing 360 Solutions stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$357k | US$374k | 91% |
Other | US$33k | US$216k | 9% |
Total Compensation | US$391k | US$590k | 100% |
Talking in terms of the industry, salary represented approximately 21% of total compensation out of all the companies we analyzed, while other remuneration made up 79% of the pie. Staffing 360 Solutions pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Staffing 360 Solutions, Inc.'s Growth Numbers
Staffing 360 Solutions, Inc.'s earnings per share (EPS) grew 60% per year over the last three years. In the last year, its revenue is down 20%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Staffing 360 Solutions, Inc. Been A Good Investment?
Since shareholders would have lost about 72% over three years, some Staffing 360 Solutions, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As previously discussed, Brendan is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 6 warning signs for Staffing 360 Solutions (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Important note: Staffing 360 Solutions is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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