Steve Rendle has been the CEO of V.F. Corporation (NYSE:VFC) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 Steve Rendle's Compensation Compare With Similar Sized Companies?
According to our data, V.F. Corporation has a market capitalization of US$32b, and pays its CEO total annual compensation worth US$18m. (This is based on the year to March 2019). We note that's an increase of 207% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$1.2m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
Thus we can conclude that Steve Rendle receives more in total compensation than the median of a group of large companies in the same market as V.F. Corporation. However, this doesn't necessarily mean the pay is too high. 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 V.F, below.
Is V.F. Corporation Growing?
Earnings per share at V.F. Corporation are much the same as they were three years ago, albeit with a positive trend. In the last year, its revenue is up 14%.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has V.F. Corporation Been A Good Investment?
Boasting a total shareholder return of 43% over three years, V.F. Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by V.F. Corporation, and compared it to remuneration at a group of other large companies. We found that it pays well over the median amount paid in the benchmark group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying V.F shares with their own money (free access).
If you want to buy a stock that is better than V.F, this free list of high return, low debt companies is a great place to look.
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