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In 2012 Charlie Morrison was appointed CEO of Wingstop Inc. (NASDAQ:WING). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Charlie Morrison's Compensation Compare With Similar Sized Companies?
Our data indicates that Wingstop Inc. is worth US$2.8b, and total annual CEO compensation is US$4.5m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$690k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.2m.
So Charlie Morrison is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Wingstop has changed from year to year.
Is Wingstop Inc. Growing?
On average over the last three years, Wingstop Inc. has grown earnings per share (EPS) by 23% each year (using a line of best fit). Its revenue is up 19% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Wingstop Inc. Been A Good Investment?
I think that the total shareholder return of 331%, over three years, would leave most Wingstop Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Charlie Morrison is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Wingstop shares (free trial).
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.
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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.