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Is Zumiez Inc.'s (NASDAQ:ZUMZ) CEO Paid Enough Relative To Peers?

Simply Wall St

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In 2000 Rick Brooks was appointed CEO of Zumiez Inc. (NASDAQ:ZUMZ). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Zumiez

How Does Rick Brooks's Compensation Compare With Similar Sized Companies?

According to our data, Zumiez Inc. has a market capitalization of US$654m, and pays its CEO total annual compensation worth US$2.1m. (This is based on the year to February 2019). We note that's an increase of 21% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$715k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.

So Rick Brooks is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Zumiez, below.

NasdaqGS:ZUMZ CEO Compensation, July 4th 2019

Is Zumiez Inc. Growing?

Over the last three years Zumiez Inc. has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). Its revenue is up 3.5% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Zumiez Inc. Been A Good Investment?

Most shareholders would probably be pleased with Zumiez Inc. for providing a total return of 75% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Rick Brooks is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Zumiez shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.