Yahoo Finance Should You Be Pleased About The CEO Pay At Conn's, Inc.'s (NASDAQ:CONN)
Norm Miller became the CEO of Conn's, Inc. (NASDAQ:CONN) in 2015. 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 Conn's
How Does Norm Miller's Compensation Compare With Similar Sized Companies?
According to our data, Conn's, Inc. has a market capitalization of US$269m, and paid its CEO total annual compensation worth US$14m over the year to January 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$988k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.
It would therefore appear that Conn's, Inc. pays Norm Miller more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Conn's has changed over time.
Is Conn's, Inc. Growing?
Conn's, Inc. has increased its earnings per share (EPS) by an average of 110% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.8% 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Conn's, Inc. Been A Good Investment?
Since shareholders would have lost about 5.9% over three years, some Conn's, Inc. 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 compared the total CEO remuneration paid by Conn's, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Conn's shares with their own money (free access).
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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