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Should You Worry About Superior Group of Companies, Inc.'s (NASDAQ:SGC) CEO Pay?

Simply Wall St

Michael Benstock has been the CEO of Superior Group of Companies, Inc. (NASDAQ:SGC) since 2003. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

See our latest analysis for Superior Group of Companies

How Does Michael Benstock's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Superior Group of Companies, Inc. has a market cap of US$278m, and is paying total annual CEO compensation of US$2.3m. (This figure is for the year to December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$542k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.0m.

Thus we can conclude that Michael Benstock receives more in total compensation than the median of a group of companies in the same market, and of similar size to Superior Group of Companies, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Superior Group of Companies has changed from year to year.

NasdaqGM:SGC CEO Compensation, April 18th 2019

Is Superior Group of Companies, Inc. Growing?

On average over the last three years, Superior Group of Companies, Inc. has grown earnings per share (EPS) by 1.8% each year (using a line of best fit). It achieved revenue growth of 30% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future.

Has Superior Group of Companies, Inc. Been A Good Investment?

Superior Group of Companies, Inc. has not done too badly by shareholders, with a total return of 7.8%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared total CEO remuneration at Superior Group of Companies, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. Whatever your view on compensation, you might want to check if insiders are buying or selling Superior Group of Companies shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.