Yahoo Finance This Is Why Shoe Carnival, Inc.'s (NASDAQ:SCVL) CEO Compensation Looks Appropriate
Key Insights
Shoe Carnival will host its Annual General Meeting on 25th of June
Total pay for CEO Mark Worden includes US$1.00m salary
The total compensation is similar to the average for the industry
Shoe Carnival's total shareholder return over the past three years was 12% while its EPS grew by 0.7% over the past three years
Under the guidance of CEO Mark Worden, Shoe Carnival, Inc. (NASDAQ:SCVL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 25th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.
See our latest analysis for Shoe Carnival
Comparing Shoe Carnival, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Shoe Carnival, Inc. has a market capitalization of US$1.0b, and reported total annual CEO compensation of US$3.5m for the year to February 2024. Notably, that's a decrease of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.
In comparison with other companies in the American Specialty Retail industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$4.7m. So it looks like Shoe Carnival compensates Mark Worden in line with the median for the industry. What's more, Mark Worden holds US$2.8m worth of shares in the company in their own name.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$1.0m | US$850k | 29% |
Other | US$2.5m | US$3.2m | 71% |
Total Compensation | US$3.5m | US$4.0m | 100% |
On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. Shoe Carnival 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 Shoe Carnival, Inc.'s Growth Numbers
Earnings per share at Shoe Carnival, Inc. are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is down 2.4%.
We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Shoe Carnival, Inc. Been A Good Investment?
With a total shareholder return of 12% over three years, Shoe Carnival, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Shoe Carnival that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
