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Should You Worry About Denny's Corporation's (NASDAQ:DENN) CEO Pay Cheque?

Simply Wall St

In 2011 John Miller was appointed CEO of Denny's Corporation (NASDAQ:DENN). 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Denny's

How Does John Miller's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Denny's Corporation has a market cap of US$1.4b, and is paying total annual CEO compensation of US$4.0m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$896k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.

That means John Miller receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Denny's has changed over time.

NasdaqCM:DENN CEO Compensation, September 10th 2019

Is Denny's Corporation Growing?

On average over the last three years, Denny's Corporation has grown earnings per share (EPS) by 48% each year (using a line of best fit). It achieved revenue growth of 7.0% over the last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Denny's Corporation Been A Good Investment?

Boasting a total shareholder return of 123% over three years, Denny's Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

John Miller is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Denny's shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.