Yahoo Finance Is Blue Bird Corporation's (NASDAQ:BLBD) CEO Salary Justified?
In 2015 Phil Horlock was appointed CEO of Blue Bird Corporation (NASDAQ:BLBD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Blue Bird
How Does Phil Horlock's Compensation Compare With Similar Sized Companies?
Our data indicates that Blue Bird Corporation is worth US$473m, and total annual CEO compensation is US$2.5m. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$800k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.5m.
As you can see, Phil Horlock is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Blue Bird Corporation is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Blue Bird, below.
Is Blue Bird Corporation Growing?
On average over the last three years, Blue Bird Corporation has grown earnings per share (EPS) by 40% each year (using a line of best fit). Revenue was pretty flat on last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Blue Bird Corporation Been A Good Investment?
Boasting a total shareholder return of 65% over three years, Blue Bird Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Blue Bird Corporation, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Blue Bird.
Important note: Blue Bird 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.
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.
