In 2008 Dennis Eidson was appointed CEO of SpartanNash Company (NASDAQ:SPTN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Dennis Eidson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that SpartanNash Company has a market cap of US$445m, and reported total annual CEO compensation of US$281k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at . 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 from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at SpartanNash, below.
Is SpartanNash Company Growing?
On average over the last three years, SpartanNash Company has shrunk earnings per share by 27% each year (measured with a line of best fit). In the last year, its revenue is up 4.7%.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in 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 SpartanNash Company Been A Good Investment?
Given the total loss of 63% over three years, many shareholders in SpartanNash Company are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that SpartanNash Company remunerates its CEO below most similar sized companies.
Dennis Eidson is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SpartanNash.
If you want to buy a stock that is better than SpartanNash, 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 email@example.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.