Yahoo Finance It Looks Like The CEO Of Winmark Corporation (NASDAQ:WINA) May Be Underpaid Compared To Peers
Key Insights
Winmark to hold its Annual General Meeting on 24th of April
Salary of US$645.0k is part of CEO Brett Heffes's total remuneration
Total compensation is 78% below industry average
Winmark's total shareholder return over the past three years was 104% while its EPS grew by 10% over the past three years
Shareholders will be pleased by the impressive results for Winmark Corporation (NASDAQ:WINA) recently and CEO Brett Heffes has played a key role. This would be kept in mind at the upcoming AGM on 24th of April which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Check out our latest analysis for Winmark
How Does Total Compensation For Brett Heffes Compare With Other Companies In The Industry?
At the time of writing, our data shows that Winmark Corporation has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$1.6m for the year to December 2023. We note that's a decrease of 12% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$645k.
On comparing similar companies from the American Specialty Retail industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$7.2m. This suggests that Brett Heffes is paid below the industry median. What's more, Brett Heffes holds US$40m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$645k | US$625k | 40% |
Other | US$974k | US$1.2m | 60% |
Total Compensation | US$1.6m | US$1.8m | 100% |
Speaking on an industry level, nearly 18% of total compensation represents salary, while the remainder of 82% is other remuneration. Winmark is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Winmark Corporation's Growth Numbers
Winmark Corporation's earnings per share (EPS) grew 10% per year over the last three years. It achieved revenue growth of 1.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Winmark Corporation Been A Good Investment?
We think that the total shareholder return of 104%, over three years, would leave most Winmark Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Winmark (1 shouldn't be ignored!) that you should be aware of before investing here.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
