Yahoo Finance Is Briggs & Stratton Corporation’s (NYSE:BGG) CEO Pay Fair?
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In 2010 Todd Teske was appointed CEO of Briggs & Stratton Corporation (NYSE:BGG). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Briggs & Stratton
How Does Todd Teske’s Compensation Compare With Similar Sized Companies?
According to our data, Briggs & Stratton Corporation has a market capitalization of US$541m, and pays its CEO total annual compensation worth US$3.5m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$958k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.
Thus we can conclude that Todd Teske receives more in total compensation than the median of a group of companies in the same market, and of similar size to Briggs & Stratton Corporation. However, this doesn’t necessarily mean the pay 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 Briggs & Stratton has changed from year to year.
Is Briggs & Stratton Corporation Growing?
Over the last three years Briggs & Stratton Corporation has shrunk its earnings per share by an average of 64% per year (measured with a line of best fit). In the last year, its revenue is up 2.4%.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Briggs & Stratton Corporation Been A Good Investment?
Since shareholders would have lost about 32% over three years, some Briggs & Stratton Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We examined the amount Briggs & Stratton Corporation 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Briggs & Stratton.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
