Should You Worry About Ross Stores, Inc.'s (NASDAQ:ROST) CEO Salary Level?
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. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Ross Stores
How Does Barbara Rentler's Compensation Compare With Similar Sized Companies?
According to our data, Ross Stores, Inc. has a market capitalization of US$43b, and paid its CEO total annual compensation worth US$12m over the year to February 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$1.3m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Barbara Rentler 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.
You can see, below, how CEO compensation at Ross Stores has changed over time.
Is Ross Stores, Inc. Growing?
On average over the last three years, Ross Stores, Inc. has grown earnings per share (EPS) by 18% each year (using a line of best fit). Its revenue is up 5.3% 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 89% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Barbara Rentler is paid around the same as most CEOs of large companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Ross Stores insiders are buying or selling shares.
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.
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.
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. Thank you for reading.
