Kevin Guest became the CEO of USANA Health Sciences, Inc. (NYSE:USNA) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kevin Guest's Compensation Compare With Similar Sized Companies?
Our data indicates that USANA Health Sciences, Inc. is worth US$1.6b, and total annual CEO compensation is US$2.9m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$821k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
That means Kevin Guest receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at USANA Health Sciences has changed from year to year.
Is USANA Health Sciences, Inc. Growing?
USANA Health Sciences, Inc. has increased its earnings per share (EPS) by an average of 5.3% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.
I would prefer it if there was revenue growth, but it is good to see EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has USANA Health Sciences, Inc. Been A Good Investment?
Given the total loss of 0.8% over three years, many shareholders in USANA Health Sciences, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Kevin Guest is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if USANA Health Sciences insiders are buying or selling shares.
Important note: USANA Health Sciences 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.
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