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Steve Becker became the CEO of Tuesday Morning Corporation (NASDAQ:TUES) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Becker's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tuesday Morning Corporation has a market cap of US$68m, and is paying total annual CEO compensation of US$1.3m. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$718k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.
As you can see, Steve Becker is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Tuesday Morning Corporation 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, below, how CEO compensation at Tuesday Morning has changed over time.
Is Tuesday Morning Corporation Growing?
On average over the last three years, Tuesday Morning Corporation has shrunk earnings per share by 36% each year (measured with a line of best fit). Revenue was pretty flat on last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Tuesday Morning Corporation Been A Good Investment?
Given the total loss of 77% over three years, many shareholders in Tuesday Morning Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Tuesday Morning Corporation, 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. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if Tuesday Morning insiders are buying or selling shares.
Important note: Tuesday Morning may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.