In 2016 Bob Rosenblatt was appointed CEO of EVINE Live Inc. (NASDAQ:EVLV). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Bob Rosenblatt’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that EVINE Live Inc. has a market cap of US$31m, and is paying total annual CEO compensation of US$2.2m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$779k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$304k.
As you can see, Bob Rosenblatt is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean EVINE Live 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 EVINE Live, below.
Is EVINE Live Inc. Growing?
Over the last three years EVINE Live Inc. has grown its earnings per share (EPS) by an average of 64% per year. In the last year, its revenue is down -2.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has EVINE Live Inc. Been A Good Investment?
With a three year total loss of 68%, EVINE Live Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared total CEO remuneration at EVINE Live Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling EVINE Live shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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 firstname.lastname@example.org.