Yahoo Finance Does CSS Industries, Inc.'s (NYSE:CSS) CEO Pay Matter?
Christopher Munyan has been the CEO of CSS Industries, Inc. (NYSE:CSS) since 2006. 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. 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.
View our latest analysis for CSS Industries
How Does Christopher Munyan's Compensation Compare With Similar Sized Companies?
According to our data, CSS Industries, Inc. has a market capitalization of US$44m, and paid its CEO total annual compensation worth US$1.2m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$671k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$509k.
As you can see, Christopher Munyan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CSS Industries, Inc. 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 CSS Industries, below.
Is CSS Industries, Inc. Growing?
Over the last three years CSS Industries, Inc. has shrunk its earnings per share by an average of 101% per year (measured with a line of best fit). In the last year, its revenue changed by just 0.5%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CSS Industries, Inc. Been A Good Investment?
Since shareholders would have lost about 77% over three years, some CSS Industries, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at CSS Industries, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying CSS Industries shares with their own money (free access).
Important note: CSS Industries 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.
