In 2013 Jonathan Weis was appointed CEO of Weis Markets, Inc. (NYSE:WMK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Jonathan Weis’s Compensation Compare With Similar Sized Companies?
According to our data, Weis Markets, Inc. has a market capitalization of US$1.3b, and pays its CEO total annual compensation worth US$2.7m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.6m.
That means Jonathan Weis 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 Weis Markets has changed from year to year.
Is Weis Markets, Inc. Growing?
Over the last three years Weis Markets, Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Weis Markets, Inc. Been A Good Investment?
Weis Markets, Inc. has served shareholders reasonably well, with a total return of 32% 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.
Remuneration for Jonathan Weis is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Weis Markets shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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 email@example.com.