Yahoo Finance Shareholders May Be A Bit More Conservative With Staffing 360 Solutions, Inc.'s (NASDAQ:STAF) CEO Compensation For Now
The underwhelming share price performance of Staffing 360 Solutions, Inc. (NASDAQ:STAF) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30 September 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Staffing 360 Solutions
How Does Total Compensation For Brendan Flood Compare With Other Companies In The Industry?
Our data indicates that Staffing 360 Solutions, Inc. has a market capitalization of US$26m, and total annual CEO compensation was reported as US$396k for the year to January 2021. Notably, that's a decrease of 25% over the year before. In particular, the salary of US$359.5k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$390k. So it looks like Staffing 360 Solutions compensates Brendan Flood in line with the median for the industry. What's more, Brendan Flood holds US$249k worth of shares in the company in their own name.
Component | 2021 | 2019 | Proportion (2021) |
Salary | US$360k | US$357k | 91% |
Other | US$36k | US$168k | 9% |
Total Compensation | US$396k | US$526k | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. Staffing 360 Solutions is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Staffing 360 Solutions, Inc.'s Growth
Over the past three years, Staffing 360 Solutions, Inc. has seen its earnings per share (EPS) grow by 33% per year. It saw its revenue drop 13% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Staffing 360 Solutions, Inc. Been A Good Investment?
With a total shareholder return of -81% over three years, Staffing 360 Solutions, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Staffing 360 Solutions (2 are a bit concerning!) that you should be aware of before investing here.
Switching gears from Staffing 360 Solutions, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
