Jeff Rosenthal has been the CEO of Hibbett Sports, Inc. (NASDAQ:HIBB) since 2010. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jeff Rosenthal's Compensation Compare With Similar Sized Companies?
Our data indicates that Hibbett Sports, Inc. is worth US$417m, and total annual CEO compensation was reported as US$1.6m for the year to February 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$575k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
So Jeff Rosenthal receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Hibbett Sports has changed from year to year.
Is Hibbett Sports, Inc. Growing?
On average over the last three years, Hibbett Sports, Inc. has shrunk earnings per share by 23% each year (measured with a line of best fit). Its revenue is up 13% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Hibbett Sports, Inc. Been A Good Investment?
Given the total loss of 46% over three years, many shareholders in Hibbett Sports, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Jeff Rosenthal is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Hibbett Sports shares (free trial).
If you want to buy a stock that is better than Hibbett Sports, this free list of high return, low debt companies is a great place to look.
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