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Should You Worry About Ross Stores, Inc.'s (NASDAQ:ROST) CEO Pay Cheque?

Simply Wall St

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Barbara Rentler has been the CEO of Ross Stores, Inc. (NASDAQ:ROST) since 2014. This analysis aims first to contrast CEO compensation with other large companies. 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.

Check out our latest analysis for Ross Stores

How Does Barbara Rentler's Compensation Compare With Similar Sized Companies?

Our data indicates that Ross Stores, Inc. is worth US$38b, and total annual CEO compensation is US$12m. (This is based on the year to February 2019). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.3m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

So Barbara Rentler receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Ross Stores has changed over time.

NasdaqGS:ROST CEO Compensation, July 12th 2019

Is Ross Stores, Inc. Growing?

On average over the last three years, Ross Stores, Inc. has grown earnings per share (EPS) by 20% each year (using a line of best fit). Its revenue is up 5.4% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Ross Stores, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Ross Stores, Inc. for providing a total return of 83% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Barbara Rentler is paid around what is normal the leaders of larger companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ross Stores.

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

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.