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Should You Worry About Fiesta Restaurant Group, Inc.'s (NASDAQ:FRGI) CEO Pay?

Simply Wall St

In 2017 Rich Stockinger was appointed CEO of Fiesta Restaurant Group, Inc. (NASDAQ:FRGI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Fiesta Restaurant Group

How Does Rich Stockinger's Compensation Compare With Similar Sized Companies?

Our data indicates that Fiesta Restaurant Group, Inc. is worth US$269m, and total annual CEO compensation is US$550k. (This is based on the year to December 2018). Notably, the salary of US$550k is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Fiesta Restaurant Group has changed from year to year.

NasdaqGS:FRGI CEO Compensation, August 21st 2019

Is Fiesta Restaurant Group, Inc. Growing?

On average over the last three years, Fiesta Restaurant Group, Inc. has shrunk earnings per share by 62% each year (measured with a line of best fit). It achieved revenue growth of 1.9% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Fiesta Restaurant Group, Inc. Been A Good Investment?

Since shareholders would have lost about 57% over three years, some Fiesta Restaurant Group, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Fiesta Restaurant Group, Inc. is currently paying its CEO below what is normal for companies of its size.

The compensation paid to Rich Stockinger is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. Whatever your view on compensation, you might want to check if insiders are buying or selling Fiesta Restaurant Group shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.