We Think Some Shareholders May Hesitate To Increase Rave Restaurant Group, Inc.'s (NASDAQ:RAVE) CEO Compensation
Key Insights
Rave Restaurant Group to hold its Annual General Meeting on 5th of December
Salary of US$350.0k is part of CEO Brandon Solano's total remuneration
The total compensation is 55% higher than the average for the industry
Rave Restaurant Group's total shareholder return over the past three years was 176% while its EPS grew by 77% over the past three years
Under the guidance of CEO Brandon Solano, Rave Restaurant Group, Inc. (NASDAQ:RAVE) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 5th of December. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Rave Restaurant Group
Comparing Rave Restaurant Group, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Rave Restaurant Group, Inc. has a market capitalization of US$35m, and reported total annual CEO compensation of US$887k for the year to June 2023. That's a fairly small increase of 6.8% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$350k.
In comparison with other companies in the American Hospitality industry with market capitalizations under US$200m, the reported median total CEO compensation was US$572k. Accordingly, our analysis reveals that Rave Restaurant Group, Inc. pays Brandon Solano north of the industry median. What's more, Brandon Solano holds US$1.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$350k | US$350k | 39% |
Other | US$537k | US$480k | 61% |
Total Compensation | US$887k | US$830k | 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. Rave Restaurant Group pays out 39% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Rave Restaurant Group, Inc.'s Growth
Rave Restaurant Group, Inc. has seen its earnings per share (EPS) increase by 77% a year over the past three years. Its revenue is up 7.5% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Rave Restaurant Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 176% over three years, Rave Restaurant Group, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Rave Restaurant Group that investors should look into moving forward.
Switching gears from Rave Restaurant Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
