Gerald Evans became the CEO of Hanesbrands Inc. (NYSE:HBI) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Gerald Evans's Compensation Compare With Similar Sized Companies?
According to our data, Hanesbrands Inc. has a market capitalization of US$4.9b, and pays its CEO total annual compensation worth US$8.8m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.8m.
So Gerald Evans 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 Hanesbrands has changed from year to year.
Is Hanesbrands Inc. Growing?
Over the last three years Hanesbrands Inc. has shrunk its earnings per share by an average of 11% per year (measured with a line of best fit). Its revenue is up 5.1% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Hanesbrands Inc. Been A Good Investment?
Since shareholders would have lost about 43% over three years, some Hanesbrands Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Gerald Evans is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! Shareholders may want to check for free if Hanesbrands insiders are buying or selling shares.
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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