Should You Worry About Sally Beauty Holdings, Inc.’s (NYSE:SBH) CEO Pay Cheque?
In 2015 Chris Brickman was appointed CEO of Sally Beauty Holdings, Inc. (NYSE:SBH). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
View our latest analysis for Sally Beauty Holdings
How Does Chris Brickman’s Compensation Compare With Similar Sized Companies?
According to our data, Sally Beauty Holdings, Inc. has a market capitalization of US$2.3b, and pays its CEO total annual compensation worth US$4.4m. (This figure is for the year to 2016). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.
That means Chris Brickman receives fairly typical remuneration for the CEO of a company that size. 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 Sally Beauty Holdings has changed from year to year.
Is Sally Beauty Holdings, Inc. Growing?
Over the last three years Sally Beauty Holdings, Inc. has grown its earnings per share (EPS) by an average of 11% per year. Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Sally Beauty Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 32% over three years, some Sally Beauty Holdings, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Chris Brickman is paid around the same as most CEOs of similar size companies.
We’d say the company can boast of its EPS growth, but it’s disappointing to see negative shareholder returns over three years. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. Shareholders may want to check for free if Sally Beauty Holdings insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.
