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Is PFSweb Inc’s (NASDAQ:PFSW) CEO Overpaid Relative To Its Peers?

Mike Willoughby became the CEO of PFSweb Inc (NASDAQ:PFSW) in 2013. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for PFSweb

How Does Mike Willoughby’s Compensation Compare With Similar Sized Companies?

According to our data, PFSweb Inc has a market capitalization of US$113m, and pays its CEO total annual compensation worth US$1.8m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$495k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$295k.

As you can see, Mike Willoughby is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PFSweb Inc is paying too much. 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 PFSweb, below.

NasdaqCM:PFSW CEO Compensation December 10th 18

Is PFSweb Inc Growing?

On average over the last three years, PFSweb Inc has grown earnings per share (EPS) by 40% each year. Its revenue is down -5.2% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has PFSweb Inc Been A Good Investment?

Since shareholders would have lost about 49% over three years, some PFSweb Inc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We examined the amount PFSweb Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PFSweb.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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 editorial-team@simplywallst.com.