Greg Scott became the CEO of New York & Company Inc (NYSE:NWY) in 2011. 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.
How Does Greg Scott’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that New York & Company Inc has a market cap of US$250m, and is paying total annual CEO compensation of US$1.9m. That’s less than last year. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$930k.
It would therefore appear that New York & Company Inc pays Greg Scott 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at New York, below.
Is New York & Company Inc Growing?
On average over the last three years, New York & Company Inc has grown earnings per share (EPS) by 72% each year. It achieved revenue growth of 1.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has New York & Company Inc Been A Good Investment?
Most shareholders would probably be pleased with New York & Company Inc for providing a total return of 71% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We examined the amount New York & Company 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.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if New York & Company Inc insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 firstname.lastname@example.org.