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Should You Worry About Lakeland Industries Inc’s (NASDAQ:LAKE) CEO Pay?

Christopher Ryan has been the CEO of Lakeland Industries Inc (NASDAQ:LAKE) since 2003. 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 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 Lakeland Industries

How Does Christopher Ryan’s Compensation Compare With Similar Sized Companies?

Our data indicates that Lakeland Industries Inc is worth US$110m, and total annual CEO compensation is US$871k. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$400k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$295k.

As you can see, Christopher Ryan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Lakeland Industries Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Lakeland Industries has changed over time.

NasdaqGM:LAKE CEO Compensation November 30th 18

Is Lakeland Industries Inc Growing?

Over the last three years Lakeland Industries Inc has shrunk its earnings per share by an average of 79% per year. Its revenue is up 9.6% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Lakeland Industries Inc Been A Good Investment?

With a three year total loss of 4.0%, Lakeland Industries Inc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at Lakeland Industries Inc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! So you may want to check if insiders are buying Lakeland Industries shares with their own money (free access).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.