Yahoo Finance Shareholders Will Most Likely Find DICK'S Sporting Goods, Inc.'s (NYSE:DKS) CEO Compensation Acceptable
Key Insights
DICK'S Sporting Goods will host its Annual General Meeting on 12th of June
CEO Lauren Hobart's total compensation includes salary of US$1.31m
The total compensation is similar to the average for the industry
DICK'S Sporting Goods' EPS grew by 0.6% over the past three years while total shareholder return over the past three years was 143%
Performance at DICK'S Sporting Goods, Inc. (NYSE:DKS) has been reasonably good and CEO Lauren Hobart has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of June. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for DICK'S Sporting Goods
How Does Total Compensation For Lauren Hobart Compare With Other Companies In The Industry?
Our data indicates that DICK'S Sporting Goods, Inc. has a market capitalization of US$18b, and total annual CEO compensation was reported as US$14m for the year to February 2024. Notably, that's an increase of 61% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.
On comparing similar companies in the American Specialty Retail industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$14m. So it looks like DICK'S Sporting Goods compensates Lauren Hobart in line with the median for the industry. What's more, Lauren Hobart holds US$45m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$1.3m | US$1.2m | 10% |
Other | US$12m | US$7.3m | 90% |
Total Compensation | US$14m | US$8.4m | 100% |
On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. In DICK'S Sporting Goods' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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 DICK'S Sporting Goods, Inc.'s Growth Numbers
Earnings per share at DICK'S Sporting Goods, Inc. are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is up 5.1%.
We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has DICK'S Sporting Goods, Inc. Been A Good Investment?
Boasting a total shareholder return of 143% over three years, DICK'S Sporting Goods, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for DICK'S Sporting Goods that investors should think about before committing capital to this stock.
Important note: DICK'S Sporting Goods is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
