U.S. markets open in 8 hours 5 minutes
  • S&P Futures

    +23.25 (+0.62%)
  • Dow Futures

    +142.00 (+0.46%)
  • Nasdaq Futures

    +111.25 (+0.87%)
  • Russell 2000 Futures

    +22.90 (+1.08%)
  • Crude Oil

    -0.09 (-0.17%)
  • Gold

    +7.10 (+0.39%)
  • Silver

    +0.34 (+1.38%)

    +0.0016 (+0.13%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +1.09 (+4.69%)

    +0.0020 (+0.15%)

    +0.3220 (+0.31%)

    +80.00 (+0.22%)
  • CMC Crypto 200

    -16.79 (-2.28%)
  • FTSE 100

    -15.06 (-0.22%)
  • Nikkei 225

    +391.25 (+1.39%)

Should You Worry About Educational Development Corporation's (NASDAQ:EDUC) CEO Pay Cheque?

Simply Wall St

Randall White became the CEO of Educational Development Corporation (NASDAQ:EDUC) in 1986. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

Check out our latest analysis for Educational Development

How Does Randall White's Compensation Compare With Similar Sized Companies?

According to our data, Educational Development Corporation has a market capitalization of US$53m, and paid its CEO total annual compensation worth US$405k over the year to February 2019. While we always look at total compensation first, we note that the salary component is less, at US$263k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.

So Randall White is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Educational Development has changed from year to year.

NasdaqGM:EDUC CEO Compensation, December 22nd 2019
NasdaqGM:EDUC CEO Compensation, December 22nd 2019

Is Educational Development Corporation Growing?

On average over the last three years, Educational Development Corporation has grown earnings per share (EPS) by 33% each year (using a line of best fit). In the last year, its revenue changed by just 0.5%.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Educational Development Corporation Been A Good Investment?

Most shareholders would probably be pleased with Educational Development Corporation for providing a total return of 35% over three years. 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...

Randall White is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Educational Development.

If you want to buy a stock that is better than Educational Development, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.