Why Prestige Consumer Healthcare Inc’s (NYSE:PBH) CEO Pay Matters To You
Ron Lombardi became the CEO of Prestige Consumer Healthcare Inc (NYSE:PBH) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.
Check out our latest analysis for Prestige Consumer Healthcare
How Does Ron Lombardi’s Compensation Compare With Similar Sized Companies?
According to our data, Prestige Consumer Healthcare Inc has a market capitalization of US$2.0b, and pays its CEO total annual compensation worth US$4.2m. Notably, that’s an increase of 17% over the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.
So Ron Lombardi is paid around the average of the companies we looked at. 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 Prestige Consumer Healthcare has changed from year to year.
Is Prestige Consumer Healthcare Inc Growing?
On average over the last three years, Prestige Consumer Healthcare Inc has grown earnings per share (EPS) by 59% each year. In the last year, its revenue is up 4.9%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Prestige Consumer Healthcare Inc Been A Good Investment?
Since shareholders would have lost about 28% over three years, some Prestige Consumer Healthcare Inc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Remuneration for Ron Lombardi is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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 editorial-team@simplywallst.com.
