In 1997 Tim Boyd was appointed CEO of Peak Resorts, Inc. (NASDAQ:SKIS). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Tim Boyd’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Peak Resorts, Inc. has a market cap of US$71m, and is paying total annual CEO compensation of US$520k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at US$442k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$300k.
It would therefore appear that Peak Resorts, Inc. pays Tim Boyd 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Peak Resorts, below.
Is Peak Resorts, Inc. Growing?
On average over the last three years, Peak Resorts, Inc. has shrunk earnings per share by 16% each year. It achieved revenue growth of 5.1% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Peak Resorts, Inc. Been A Good Investment?
Since shareholders would have lost about 4.0% over three years, some Peak Resorts, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Peak Resorts, 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.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if Peak Resorts insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.