Yahoo Finance Does DICK'S Sporting Goods, Inc.'s (NYSE:DKS) CEO Pay Matter?
Ed Stack has been the CEO of DICK'S Sporting Goods, Inc. (NYSE:DKS) since 1984. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for DICK'S Sporting Goods
How Does Ed Stack's Compensation Compare With Similar Sized Companies?
According to our data, DICK'S Sporting Goods, Inc. has a market capitalization of US$3.0b, and pays its CEO total annual compensation worth US$9.1m. (This is based on the year to February 2019). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
It would therefore appear that DICK'S Sporting Goods, Inc. pays Ed Stack more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at DICK'S Sporting Goods has changed from year to year.
Is DICK'S Sporting Goods, Inc. Growing?
DICK'S Sporting Goods, Inc. has increased its earnings per share (EPS) by an average of 7.1% a year, over the last three years (using a line of best fit). Its revenue is down -2.6% over last year.
I would prefer it if there was revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has DICK'S Sporting Goods, Inc. Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in DICK'S Sporting Goods, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount DICK'S Sporting Goods, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at DICK'S Sporting Goods.
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.
