Should You Worry About Fortune Brands Home & Security, Inc.'s (NYSE:FBHS) CEO Pay Cheque?
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Chris Klein has been the CEO of Fortune Brands Home & Security, Inc. (NYSE:FBHS) since 2010. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Fortune Brands Home & Security
How Does Chris Klein's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Fortune Brands Home & Security, Inc. has a market cap of US$7.6b, and is paying total annual CEO compensation of US$8.6m. (This number is for the twelve months until December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$1.2m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
So Chris Klein is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Fortune Brands Home & Security has changed over time.
Is Fortune Brands Home & Security, Inc. Growing?
Over the last three years Fortune Brands Home & Security, Inc. has grown its earnings per share (EPS) by an average of 7.8% per year (using a line of best fit). It achieved revenue growth of 3.9% over the last year.
I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has Fortune Brands Home & Security, Inc. Been A Good Investment?
Given the total loss of 2.4% over three years, many shareholders in Fortune Brands Home & Security, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Chris Klein is paid around what is normal the leaders of comparable size companies.
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fortune Brands Home & Security.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
