Steve Wallach has been the CEO of Youngevity International, Inc. (NASDAQ:YGYI) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Steve Wallach's Compensation Compare With Similar Sized Companies?
According to our data, Youngevity International, Inc. has a market capitalization of US$72m, and paid its CEO total annual compensation worth US$434k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$375k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$515k.
So Steve Wallach is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Youngevity International has changed from year to year.
Is Youngevity International, Inc. Growing?
On average over the last three years, Youngevity International, Inc. has shrunk earnings per share by 72% each year (measured with a line of best fit). Its revenue is up 7.6% over last year.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Youngevity International, Inc. Been A Good Investment?
With a three year total loss of 56%, Youngevity International, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Steve Wallach is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Youngevity International shares (free trial).
Important note: Youngevity International may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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.