Our View On Malibu Boats' (NASDAQ:MBUU) CEO Pay
Jack Springer has been the CEO of Malibu Boats, Inc. (NASDAQ:MBUU) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Malibu Boats.
Check out our latest analysis for Malibu Boats
How Does Total Compensation For Jack Springer Compare With Other Companies In The Industry?
At the time of writing, our data shows that Malibu Boats, Inc. has a market capitalization of US$1.7b, and reported total annual CEO compensation of US$2.3m for the year to June 2020. That's a notable decrease of 24% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$720k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$2.6m. So it looks like Malibu Boats compensates Jack Springer in line with the median for the industry. Furthermore, Jack Springer directly owns US$11m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$720k | US$659k | 32% |
Other | US$1.5m | US$2.3m | 68% |
Total Compensation | US$2.3m | US$3.0m | 100% |
Speaking on an industry level, nearly 26% of total compensation represents salary, while the remainder of 74% is other remuneration. Malibu Boats pays out 32% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Malibu Boats, Inc.'s Growth
Malibu Boats, Inc.'s earnings per share (EPS) grew 56% per year over the last three years. It saw its revenue drop 9.3% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Malibu Boats, Inc. Been A Good Investment?
Boasting a total shareholder return of 126% over three years, Malibu Boats, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
As previously discussed, Jack is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Malibu Boats that investors should think about before committing capital to this stock.
Switching gears from Malibu Boats, 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.
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. 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.
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