Thomas Florsheim became the CEO of Weyco Group, Inc. (NASDAQ:WEYS) in 1999. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Thomas Florsheim’s Compensation Compare With Similar Sized Companies?
According to our data, Weyco Group, Inc. has a market capitalization of US$287m, and pays its CEO total annual compensation worth US$1.9m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$640k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$967k.
As you can see, Thomas Florsheim is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Weyco Group, Inc. 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 a visual representation of the CEO compensation at Weyco Group, below.
Is Weyco Group, Inc. Growing?
Weyco Group, Inc. has increased its earnings per share (EPS) by an average of 2.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 1.2%.
I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Weyco Group, Inc. Been A Good Investment?
With a total shareholder return of 23% over three years, Weyco Group, Inc. shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by Weyco Group, Inc., 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.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Whatever your view on compensation, you might want to check if insiders are buying or selling Weyco Group shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 email@example.com.